Spanish Prime Minister Pedro Sánchez hit back at U.S. President Donald Trump's trade threats Thursday, calling proposed tariffs "unfair" and asserting Spain's sovereignty after Trump warned the country would "pay twice as much" for refusing to meet NATO defense spending targets.
Speaking to reporters in Brussels, Sánchez emphasized that trade policy falls under European Union jurisdiction, not bilateral negotiations, while maintaining that the United States remains "a friend of Spain".
The diplomatic clash erupted Wednesday at the NATO summit in The Hague, where Trump singled out Spain as "the only country that is not paying" after Madrid secured an exemption from the alliance's new 5% GDP defense spending target by 203512.
"I think Spain is terrible, what they've done," Trump told reporters, threatening to make the country "pay twice as much" in trade negotiations12. Spain has committed to spending 2.1% of GDP on defense, below the new NATO standard but above the previous 2% benchmark34.
Trump's comments came despite Spain being part of the EU, which negotiates trade deals collectively with Washington5. The president said he would negotiate "directly" with Spain, suggesting he could bypass EU trade authority1.
Sánchez defended his position by citing economic Minister Carlos Cuerpo's reminder that trade agreements are "negotiated by the European Union on behalf of all member states"1. He called Trump's tariff measures "unfair and unilateral," noting they are "doubly unfair" because Spain runs a trade deficit with the United States12.
The Spanish leader justified refusing the 5% target by arguing it would require an additional €300 billion in defense spending through 2035, forcing cuts to healthcare and education3. "Spain is always the solution, never the problem," Sánchez said at a press conference4.
The NATO dispute unfolds against existing U.S.-EU trade tensions. Trump has already imposed tariffs targeting around €380 billion worth of EU goods, including a 20% levy on most European exports and 25% on cars1. The EU has responded with retaliatory tariffs on $23 billion of U.S. products1.
Spain unveiled a €14.1 billion package in April to help companies weather U.S. tariffs, offering financing guarantees and subsidies to affected sectors23.
"Spain and the EU have been working on this for months," Sánchez said Thursday, promising "strong countermeasures collectively" against what he termed a "senseless trade war that no one asked for"4.
