Trade War Alert: EU Rallies Behind Spain Amid Trump’s Tariff Warning
The European Union vows to back Spain after U.S. President Donald Trump warns of new punitive tariffs. Tensions rise as Madrid rejects Washington’s demand to raise defense spending to 5% of GDP, reigniting transatlantic trade disputes.
The European Union vows to defend Spain against U.S. punitive tariffs. Spain has refused to spend 5 % of its GDP on defence and logistics.
This disagreement between Spain and the U.S. dates back to June, when at a NATO meeting in The Hague, the U.S. President suggested that NATO countries should spend 5 % of their GDP on defence. Of that, 3.5 % would go toward defence equipment, and 1.5 % toward infrastructure. Most NATO countries accepted these terms.
Spain was the only country to publicly refuse. At the White House, U.S. President Donald Trump stated that Spain might have to face punitive tariffs of up to 15 % or higher.
The EU insists it must step up to prevent Trump from punishing Spain, warning that a tariff on one EU member would threaten all. According to an EU trade minister, both nations will be brought to the table for discussions.