Spain Snubs NATO Deal—Trump Says They’ll Pay One Way or Another [WATCH]

President Donald Trump is warning of possible trade retaliation against Spain after the country refused to join other NATO member states in committing to a new defense spending target.

During remarks at a NATO summit press conference held in the Netherlands, Trump criticized Spain for being the only country unwilling to meet the alliance’s latest defense pledge and said he would consider economic penalties in response.

“I think Spain’s terrible what they’ve done, they are the only country that won’t pay 5%,” Trump said.

“Spain is the only country out of all of the countries that refuses to pay. They want a little bit of a free ride, but they’ll have to pay it back to us on trade, because I’m not going to let that happen. It’s unfair. It’s unfair to NATO.”

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Under the new NATO spending proposal supported by the United States and several other member nations, countries would commit to spending at least 5% of their gross domestic product (GDP) on defense and security.

Of that amount, 3.5% would be dedicated to “hard defense” expenditures, such as military hardware and combat readiness.

The remaining 1.5% would go toward broader “resilience” costs, including infrastructure capable of supporting military logistics.

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According to NATO data, several countries—including Estonia, Greece, Poland, Turkey, and the United States—are already approaching or meeting the 3.5% hard defense threshold. Spain, however, has publicly pushed back on the framework.

Prime Minister Pedro Sánchez said Spain “cannot commit to a specific spending target in terms of GDP,” prompting a sharp rebuke from President Trump.

“NATO is going to have to deal with Spain,” Trump said.

“Spain has been notorious for low pay.”

The president went on to warn of specific consequences if Spain fails to meet the 5% commitment.

“They’re doing very well. The economy is very well,” Trump said.

“And that economy could be blown right out of the water with something bad happening.”

Trump, who paused his administration’s “Liberation Day” tariffs earlier this year, set a July 9 deadline to conclude trade negotiations with over 80 countries.

Spain, he said, would face higher costs if it refuses to meet the alliance’s defense benchmarks.

“We’re negotiating with Spain on a trade deal,” Trump said.

“We’re going to make them pay twice as much. And I’m actually serious about that.”

He added that, unlike other nations, he would handle the negotiations with Spain personally.

“I’m going to negotiate directly with Spain,” he said.

“I’m going to do it myself. They’re going to pay. They’ll pay more money this way. You should tell them to go back and pay.”

Despite the U.S. holding a trade surplus with Spain, according to the U.S. Census Bureau, the president’s comments signal potential tariff measures or other restrictions targeting Spanish exports.

Such moves could impact bilateral trade, particularly for Spanish companies that rely on U.S. market access.

Spain’s defense contributions have been a topic of debate within NATO for several years, with the country routinely ranking near the bottom of the alliance in percentage-of-GDP defense spending.

The latest pressure from the Trump administration follows the president’s broader push for increased burden sharing within the alliance, a position he has maintained since his first term.

No official response has been issued by the Spanish government as of Wednesday.

NATO leaders are expected to meet again next month to assess progress on the 5% pledge.

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