EU, Spain reject Trump’s US tariff threats over NATO spending
Key Takeaways
- The US threatened tariffs against Spain for rejecting a proposed 5% NATO defense spending target.
- The European Commission and Spain rejected the threat, stating defense spending should address real security threats.
- Spain has significantly increased its defense spending, currently meeting the 2% NATO target.
- The EU indicated it would respond appropriately to any unilateral US trade measures against a member state.
- Historical precedents exist for US punitive tariffs against EU products, and potential relocation of US bases in Spain was mentioned.
US President Donald Trump expressed strong dissatisfaction with Spain for rejecting his proposal that NATO members spend 5% of their economic output on defense, threatening to impose punitive trade tariffs on the country. The European Commission stated it would respond appropriately to any unilateral measures taken against a member state, referencing the established EU-US trade platform for dispute resolution. Spain defended its position, arguing that defense spending must be directed towards responding to genuine threats, not merely increasing budgets arbitrarily. Madrid highlighted that it has more than doubled its nominal defense spending since 2017, reaching 2% of GDP this year. Experts noted precedents for US punitive tariffs against the EU, such as those imposed in 1999, and pointed out that specific Spanish products have been targeted before. Another potential consequence mentioned is the relocation of US military bases from Spain, which would negatively impact the local economy.
