• Trump threatens tariffs on Spain due to low NATO defense spending.
• Spain insists its contributions to NATO are sufficient despite not meeting the 5% GDP target.
• Spanish officials warn that tariffs would harm American consumers as well.
• The EU supports Spain, emphasizing the importance of addressing real threats.
• Madrid has increased its defense spending significantly over recent years.

US President Donald Trump has threatened to impose trade penalties, including tariffs, against Spain due to its refusal to raise defense spending to the agreed NATO target of 5% of GDP. He expressed his dissatisfaction, stating, "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," highlighting the perception of disrespect towards NATO among member states, as reported by TRT Global and Reuters.

In response, Spanish Deputy Prime Minister Yolanda Diaz criticized Trump's tariff threats, arguing that such measures would ultimately be "very costly" for American consumers due to Spain's trade deficit with the US. She highlighted that Spain is contributing to NATO’s collective defense in practical ways, despite falling short of the budgetary targets set by Trump, according to AA and TRT Global.

The European Commission has backed Spain's stance, stressing that NATO defense spending should be aligned with genuine security needs rather than arbitrary metrics. The spokesperson for the EU stated, "The defence spending debate is not about increasing spending for the sake of increasing it, but about responding to real threats." This was further echoed by the Spanish Economy and Trade Ministry, reinforcing the notion that Spain is meeting its commitment to NATO effectively, as highlighted by Al Jazeera and The Local.

Despite Trump's insistence on punitive tariffs, Spain has significantly increased its defense spending from 0.98% to 2% of GDP since 2017. Spanish officials maintain that the country fulfills its NATO obligations through active contributions across various missions, including those in Eastern Europe, according to AA and The Local.