MADRID — U.S. President Donald Trump eased his criticism of Spain on Thursday after Madrid highlighted a sharp rise in defence spending, following his brief threat to halt trade with the NATO ally.
At a NATO summit in Ankara on Wednesday, Trump had described Spain as a “terrible partner” and ordered a halt to trade amid disagreements over defence contributions and the Iran conflict. Traveling back to the United States aboard Air Force One, he told reporters Spain had “come back” and “was very generous today,” saying Madrid honored requests for “lots of payments” that had improved relations.
Spanish officials interpreted the remarks as recognition of Spain’s commitment to NATO’s former 2% of GDP defence spending target. Prime Minister Pedro Sánchez emphasized at the summit that Spain would meet that goal this year after raising nominal defence spending from 0.98% of GDP in 2017 to nearly €33 billion ($37.7 billion). Sánchez described his exchange with Trump as “very cordial.”
Despite the thaw, Trump has repeatedly pushed for a higher NATO benchmark, urging members to reach 5% of GDP by 2035, a proposal Sánchez’s left-leaning government rejects, saying spending decisions must respond to real threats and not come at the cost of social programs.
In Washington, a U.S. official said federal agencies would compile a “menu” of Spanish products that could face embargoes under Trump’s directive. Trade experts noted the president might use the International Emergency Economic Powers Act to impose full or partial restrictions; Trump’s first administration previously applied a 30% anti-dumping tariff on Spanish black olives in 2018.
Madrid downplayed the spat. Spanish sources told El Mundo the dispute resembled a staged confrontation and said they had seen no economic fallout or decline in investment. Opposition figures offered mixed reactions: the main center-right People’s Party blamed Sánchez for the controversy but stressed the economic ties between U.S. and Spanish firms would limit fallout, while Aragon regional authorities, home to major U.S. data center investment, described business as usual. Far-right Vox leader Santiago Abascal, an ally of Trump, denounced the episode as “absolutely dramatic,” accusing Sánchez of harming Spain’s global credibility.