• Trump criticizes Spain for reluctance to increase NATO defense spending to 5% of GDP.
• He threatens to double tariffs on Spain as part of potential trade negotiations.
• Spanish Prime Minister Sanchez counters claims and highlights existing trade deficits.

During a press conference at the NATO summit in the Netherlands, President Trump expressed strong criticism of Spain for its hesitance to increaseits defense spending to the newly proposed 5% of Gross Domestic Product. He stated, "I think Spain's terrible what they’ve done... They want to stay at 2 percent," and suggested he would respond by negotiating to make Spain "pay twice as much" through a trade deal, indicating a harsh stance towards what he perceives as unfairness among NATO allies, particularly regarding defense contributions, according to The Hill and The Local.

Trump's comments came in light of Spain's significant opposition to the increased defense budget, which has historically been viewed through the lens of its domestic priorities. The Spanish government has argued that its current military spending level meets NATO’s requirements without needing to meet the controversial new benchmark. Prime Minister Pedro Sanchez responded directly to Trump's threats, articulating Spain's position that it has a trade deficit with the U.S. and criticizing the overall trade war initiated by the U.S. as "unfair and unilateral," according to AA and The Local.

While Trump expressed his admiration for Spain and stated, "Spain is a great place and great people," he maintains insistence on increased economic contributions from the country. This escalates the risk of a trade conflict, especially following NATO's commitment to a timeline that may see Spain reevaluating its military budget through to 2035. Sanchez has countered these assertions, noting that recent agreements have provided Spain with certain exemptions from strict adherence to this spending target, which has implications for his government's political stability at home amidst ongoing scandals, highlighting the complexity of negotiating with a unilateral economic power, according to The Hill and AA.