Lorraine Williamson
Tensions between Washington and Madrid have escalated after US President Donald Trump issued a direct warning to Spain. In a White House press conference on Monday, Trump threatened to impose import tariffs on Spanish goods unless Prime Minister Pedro Sánchez significantly increases defence spending to 5% of GDP.
The president’s remarks mark a sharp escalation in his long-running criticism of European NATO members. Trump argues that Spain, among others, relies heavily on American protection while failing to contribute its “fair share” to the alliance. “It’s unfair and disrespectful to the United States,” he said, accusing Madrid of benefitting from NATO security without paying its way.
The demand for a 5% defence commitment — well above the 2% target agreed by NATO — has sparked concern across Europe. Economists and defence experts alike warn that such an increase would be politically impossible and economically destabilising for Spain, where social spending and inflation already weigh heavily on the budget.
Threat of tariffs hits home
Trump’s threat to introduce import duties has alarmed Spanish exporters, who fear a repeat of the 2018 trade tensions that saw tariffs placed on European olive oil, wine and steel. The United States remains one of Spain’s largest non-EU trading partners, and any rise in duties could have a devastating effect on key industries.
Agricultural producers would be among the first to suffer. Olive oil, citrus fruits, cheese and Rioja wines could all become less competitive in the American market. The fashion sector — home to international names such as Zara and Mango — may also face declining sales as prices rise. Spain’s car-parts and machinery exports could be hit too, undermining one of the country’s strongest manufacturing bases.
Sánchez chooses diplomacy over confrontation
The Spanish government has so far avoided a public clash. Sánchez has remained cautious, seeking talks with other NATO members before issuing any formal statement. Government sources suggest Madrid prefers quiet diplomacy to open confrontation, aware that any escalation could damage both trade and transatlantic relations.
Yet the political stakes are high. Trump’s demand for higher defence spending comes just as Spain tries to balance social priorities at home with international obligations abroad. Economists warn that yielding to US pressure could strain public finances and provoke backlash among voters already critical of austerity-style measures.
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A transatlantic test of strength
For Spain, this episode underscores the delicate balance between alliance loyalty and national sovereignty. For Trump, it is another chance to project strength and enforce his vision of “fair burden-sharing” within NATO.
Whether the threat of tariffs becomes reality remains uncertain. But the message from Washington could not be clearer: unless Spain spends more on defence, its most celebrated exports — from olive oil to fashion — may soon face a steep price for global protection.
Source: RTVE