Donald Trump has retreated from his recent threat to expel Spain from NATO, but renewed his warning that the U.S. may impose tariffs on Spanish goods due to insufficient defense spending. the former president, speaking at a campaign rally on October 14, 2025, indicated a shift in approach regarding Spain’s NATO membership while reiterating his long-held position that allies must contribute their fair share to collective defense.
The reversal comes after Trump previously suggested Spain woudl be removed from the alliance for failing to meet the NATO benchmark of spending 2% of its GDP on defense, and now 5%. While he no longer advocates for outright expulsion, Trump signaled he is prepared to leverage economic pressure, specifically tariffs, to compel Spain to increase its military investment. This renewed threat underscores the potential for important transatlantic economic friction should Trump win the November 2024 election.
Spain currently spends approximately 1.2% of its GDP on defense, falling well short of both the 2% NATO guideline and Trump’s preferred 5% target. Trump has consistently criticized European allies for relying on the United States to shoulder a disproportionate share of the financial burden for NATO,and has repeatedly threatened trade penalties to incentivize increased spending.
“They have to pay,” Trump stated, according to reports from the rally. “Spain is not paying their fair share. We’re going to have to look at tariffs. Big tariffs.”
the 5% GDP defense spending target is a figure Trump has recently begun promoting, exceeding the existing NATO commitment. Experts suggest this higher threshold is unlikely to be met by many European nations, raising concerns about potential trade wars and strains on the transatlantic alliance. The situation highlights the ongoing debate over burden-sharing within NATO and the potential for a more transactional approach to foreign policy under a second Trump management.
