Washington, D.C. – October 15, 2025 – In a fiery exchange with reporters at the White House, U.S. President Donald Trump unleashed sharp criticism against Spain, accusing the European nation of undermining NATO's unity by refusing to commit to a new 5% defense spending target. Speaking alongside Argentine President Javier Milei, Trump warned of potential trade penalties, including tariffs, as retaliation for what he described as Madrid's "disrespectful" stance toward the alliance.
"I'm very unhappy with Spain. They're the only country that didn't raise their number up to 5% ... so I'm not happy with Spain," Trump declared, his voice rising with familiar indignation. "I think what they did is a very bad thing for NATO. I think it's very unfair to NATO."
The remarks, delivered during a bilateral meeting focused on economic ties between the U.S. and Argentina, marked the latest escalation in a simmering transatlantic rift that has persisted since the NATO summit in The Hague earlier this year. Trump's comments come four months after alliance leaders gathered in the Netherlands to forge a landmark agreement on boosting military expenditures amid heightened global threats, including Russia's ongoing war in Ukraine and rising tensions in the Indo-Pacific.
At that June 24-25 summit – the first hosted by the Netherlands and the inaugural under new NATO Secretary-General Mark Rutte – the 32 member states pledged to allocate 5% of their gross domestic product (GDP) to defense and security-related spending by 2035. This ambitious target, a more than doubling of the previous 2% guideline established in 2014, was championed by Trump as essential for burden-sharing and deterring adversaries. The commitment breaks down into 3.5% for core defense needs – such as troops, weapons, and equipment – and an additional 1.5% for broader security investments like cybersecurity, military infrastructure, and industrial capacity.
However, Spain emerged as the lone holdout, securing a controversial exemption that has fueled Trump's ire. In a letter to Rutte just days before the summit, Spanish Prime Minister Pedro Sánchez argued that the 5% figure was "incompatible with our welfare state and our world vision," emphasizing Madrid's commitment to social spending amid economic recovery from the COVID-19 pandemic and energy crises triggered by the Ukraine conflict. Instead, Spain agreed to cap its defense outlay at 2.1% of GDP, a level it reached earlier this year after years of lagging behind – it spent just 1.28% in 2024, the lowest among NATO members. Sánchez hailed the deal as a victory for "sovereignty," noting that Spain would still fulfill alliance capability targets, including contributions to joint exercises and hosting U.S. forces at bases like Rota.
Trump, who has long railed against "delinquent" NATO allies during his first term and beyond, viewed the exemption as a personal affront. During the summit, he labeled Spain's position "terrible" and floated the idea of expelling the country from the alliance – a provocative notion that stunned European diplomats, given NATO's consensus-based decision-making and Spain's strategic importance in the Mediterranean. "I think it's very disrespectful to NATO. In fact, I was thinking about giving them trade punishment through tariffs because of what they did ... I think unbelievably disrespectful ... I think they should be punished for that," Trump reiterated on Tuesday, echoing threats he first made in June.
The tariff warning injects economic warfare into what was already a military and diplomatic flashpoint. As a member of the European Union, Spain's trade relations with the U.S. are governed by broader bloc-wide agreements, complicating unilateral U.S. actions. Bilateral trade between the two nations topped $40 billion in 2024, with Spain exporting automobiles, pharmaceuticals, and olive oil, while importing U.S. aircraft, machinery, and agricultural goods. Trump, who imposed tariffs on European steel and aluminum during his first administration, suggested he could target Spanish exports specifically, saying, "When we negotiate with Spain on a trade deal, we're going to make Spain pay twice as much on trade." Analysts warn that such measures could provoke EU-wide retaliation, echoing the 2018 trade spat that saw bourbon and Harley-Davidson motorcycles hit with countermeasures.
Spain's government responded swiftly but measuredly to Trump's latest salvo. Defense Minister Margarita Robles, speaking from Madrid, reaffirmed the country's "ironclad" NATO loyalty, noting that U.S. military officials are "well aware" of Spain's contributions, including its role in countering migration flows, hosting NATO's southern flank operations, and deploying troops to Latvia as part of enhanced forward presence battlegroups. "These statements were made in a specific context, but Spain is a full member and meets its capability targets just as the United States does," Robles said, urging de-escalation.
Prime Minister Sánchez, addressing parliament on Wednesday, struck a conciliatory yet firm tone. "Spain will not be bullied into decisions that undermine our social model," he stated, pointing to domestic polls showing public opposition to defense hikes amid inflation hovering at 2.5% and youth unemployment at 26%. Sánchez highlighted recent investments, including a €10 billion procurement package for F-35 jets and Eurofighter upgrades, as evidence of commitment without the 5% straitjacket. He also invoked NATO's foundational principle of collective defense under Article 5, subtly reminding Trump of the alliance's mutual obligations.
The spat unfolds against a backdrop of NATO's post-summit momentum. The Hague gathering, described by Rutte as "historic," not only locked in the spending pledge but also ramped up support for Ukraine, pledging €50 billion in additional aid and establishing a €100 billion defense innovation fund. Trump, who met Ukrainian President Volodymyr Zelenskyy on the summit's sidelines, reiterated U.S. backing for Patriot missile systems while pushing for peace talks with Russia – a position that drew cautious applause from allies wary of concessions to Moscow.
Yet, Trump's focus on Spain underscores deeper fissures in the alliance. During his 2018-2019 tenure, he repeatedly threatened to withdraw U.S. support unless spending rose, a rhetoric that alienated partners but arguably spurred increases: 23 members now meet or exceed 2%, up from three in 2014. The 5% target, while aspirational, faces skepticism from fiscal hawks in countries like Belgium and Slovakia, which voiced reservations but ultimately acquiesced. Critics, including French President Emmanuel Macron, argue the emphasis on raw percentages overlooks qualitative contributions, such as intelligence sharing and rapid deployment forces.
European diplomats, speaking off the record, express frustration with Trump's "America First" approach, viewing the tariff threats as leverage for unrelated concessions, like EU purchases of U.S. liquefied natural gas. "This isn't about fairness; it's about bilateral wins," one senior EU official told Reuters. On X (formerly Twitter), the backlash was swift: users decried Trump's "bullying," with hashtags like #NATOUnity and #SpainStandsStrong trending in Europe, while American conservatives praised the tough talk as "long-overdue accountability."
Milei, Trump's guest and a fellow populist, offered tacit support during the presser, nodding along as the president vented. The Argentine leader, fresh from IMF negotiations, used the platform to tout his own austerity reforms, drawing parallels to NATO's need for "fiscal discipline." Yet, the meeting's optics – two right-wing firebrands united against a NATO "free rider" – risk further polarizing the alliance at a time when unity is paramount.
Economists caution that tariffs could ripple beyond bilateral ties. Spain's exemption was a compromise to avoid vetoing the summit declaration, preserving consensus – NATO's lifeblood. Punitive measures might embolden other outliers, like Turkey, which has clashed with allies over Sweden's membership. Moreover, with U.S. defense spending at 3.5% of GDP – exempt from the full 5% per Trump's insistence – the hypocrisy charge lingers.
As the dust settles, NATO watchers anticipate a cooling-off period. Rutte, leveraging his Dutch pragmatism, plans bilateral talks with Sánchez and Trump in November to "realign incentives." For Spain, the episode tests its balancing act: bolstering security without eroding the welfare state that underpins its progressive coalition government.
Trump's broadside, while theatrical, signals no retreat from his vision of a "stronger, fairer" NATO. Whether it yields concessions or fractures trust remains unclear. In Brussels and Madrid, officials are already gaming out scenarios – from tariff waivers tied to spending pledges to quiet U.S. pressure on EU trade talks. One thing is certain: the alliance's post-Cold War cohesion, forged in the fires of 9/11 and Ukraine, now grapples with internal economic fault lines as potent as any external threat.
In related developments, NATO's defense industry forum at The Hague – attended by U.S. firms like Lockheed Martin and Raytheon – announced €20 billion in joint procurement deals, underscoring the summit's tangible wins. Meanwhile, on Capitol Hill, bipartisan lawmakers introduced a resolution affirming U.S. Article 5 commitments, a subtle rebuke to Trump's occasional skepticism.
As October's chill sets in, the Atlantic bridge wobbles. Trump's words, once dismissed as bluster, now carry the weight of policy – and the potential cost of disunity in an era of multiplying perils.
