U.S. President Donald Trump warned on Wednesday that Spain will face commercial retaliation for refusing to raise its defense spending to 5% of GDP, a target he is demanding from all NATO members.

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“I’m going to negotiate directly with Spain. I’ll do it myself. They will pay—through trade,” Trump said at a press conference following the NATO summit in The Hague. “We’re going to negotiate a trade deal with Spain. We’re going to make them pay double. And I mean it. We’re going to get it done.”

Spain currently allocates 2.1% of its GDP to defense and had reached an agreement with NATO to maintain that level, according to Spanish Prime Minister Pedro Sánchez. However, Trump denounced this decision and accused Madrid of attempting to benefit from the alliance without fully contributing.

“Spain is the only country that refuses to pay. They want it for free,” Trump claimed. “But they’ll have to pay us back through trade, because I’m not going to let that happen. It’s unfair.”

The U.S. president also labeled Spain “the most hostile” NATO member in relation to defense spending increases. “They’re the only country not willing to pay the full amount. They want to stay at 2%. And, you know, their economy is doing great. That economy could collapse completely if something bad happens,” he warned.

Trump’s remarks have raised concerns that Washington could impose new tariffs on Spanish exports, in addition to those already affecting the European Union. In recent months, the U.S. applied 25% tariffs on EU steel and aluminum and announced broader measures that include 20% tariffs on various European products.

In this context, Spanish Economy Minister Carlos Cuerpo avoided responding directly to Trump’s threats. Instead, he emphasized that “Spain is a reliable and stable partner in the Atlantic Alliance” and that the country is committed to “covering the necessary defense capabilities we have agreed to.”

Cuerpo also underscored that “Spain is a key partner in this transatlantic relationship” between the European Union and the United States, describing it as “the most important in the world” in trade terms and “a treasure we want to protect.”

He reminded that trade negotiations are not handled bilaterally: “Talks take place within the framework of the European Commission, which negotiates on behalf of all member states, not just Spain.”

As the July 9 deadline approaches for a new EU–U.S. trade deal, Brussels is preparing for potential retaliation—while Madrid finds itself caught between NATO demands and looming American penalties.

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