Since the beginning of his second term in January 2025, U.S. President Donald Trump has repeatedly threatened Spain with trade repercussions unless the country increases its defense spending. Recently, he indicated a willingness to 'cut trade with Spain' in response to the Spanish government's stance on Iran. This is not the first instance of Trump publicly criticizing Spain; throughout 2025, he threatened tariffs on Spanish products for failing to raise military expenditure to 5% of GDP, even suggesting that Spain might be expelled from NATO.

In his second term, Trump's rhetoric continued to be aggressive towards the Spanish government, with significant remarks made during his address at the World Economic Forum in Davos in 2026. He expressed dissatisfaction with Spain's defense contributions, which he argues are necessary for the country's role within NATO. This mounting pressure on Spain reflects Trump's broader foreign policy strategy which emphasizes increased military spending from NATO allies and showcases his administration's confrontational approach to alliances and international relations.

The implications of Trump's threats are considerable, as they not only strain U.S.-Spain relations but also raise concerns within NATO regarding the commitments of member states. The possibility of tariffs could impact various sectors of the Spanish economy, leading to potential backlash from the European Union. Trump's administration continues to use its leverage over trade and defense commitments as negotiating tools, indicating a willingness to provoke diplomatic tensions with allies over budgetary issues.