US President Donald Trump and Spanish Prime Minister Pedro Sánchez were together during the World Cup final in New Jersey on Sunday, July 19, according to reports by Dagsavisen. Despite the public political friction—which included Trump threatening to cut off all trade with Spain—Sánchez described their encounter on the stadium’s glass-walled VIP tribune as entirely friendly and focused on soccer.
NATO Defense Spending and the Five Percent Target
The core policy dispute between Washington and Madrid centers on defense budgets and military operations. According to Dagsavisen, Trump has repeatedly labeled Spain a “terrible partner” in NATO and threatened a total trade embargo after Madrid refused to let the US use Spanish military bases in Rota and Morón for the war in Iran, using the baseline justification of “no to war.” During the NATO summit in Ankara in early July, Trump reiterated his stance, stating that Spain is a “lost cause” and that the US no longer wishes to trade with the country.
In response, Spanish authorities maintain that their current military investments meet all alliance obligations. Spain-expert and University of Oslo emeritus José María Izquierdo told Dagsavisen that Spain currently allocates just over 2 percent of its GDP to defense. Izquierdo noted that while the country has boosted military spending and reorganized domestic defense firms, pushing that figure up to Trump’s stated goal of 5 percent would force unacceptable cuts to social services and public welfare. Furthermore, NUPI researcher Marianne Riddervold pointed out to Dagsavisen that Sánchez prioritizes a broader concept of security centered heavily on citizen welfare and environmental protection rather than massive military stockpiles.
Did you know? Spain currently has approximately 3,000 military personnel deployed primarily on NATO missions, with active troops stationed in Slovakia, Estonia, Latvia, Romania, and Finland, while also leading NATO’s naval force in the North Atlantic, according to data cited by José María Izquierdo.
Economic Interdependence and Trade War Realities
Threats of a unilateral trade blockade against Spain carry significant structural hurdles, according to economic analysts. José María Izquierdo explained to Dagsavisen that US trade statistics show Washington exports nearly double the value of goods to Spain compared to what Spain sends to the US, resulting in a substantial American trade surplus. Because of this imbalance, Izquierdo asserted that major US multinational technology corporations would firmly reject any embargo due to the severe financial blow it would deal to American firms.
Adding to the economic shield, NUPI researcher Marianne Riddervold emphasized to Dagsavisen that targeting Spain economically is legally and practically unviable because any sanctions against Madrid function as sanctions against the entire European Union. Riddervold characterized Trump’s trade warnings as “meaningless,” noting that Spanish leadership can easily dismiss his political bravado, especially given that Trump softened his tone immediately following the Ankara summit by claiming Spain had “made up for it” through recent budget increases.
Shifting European Security Priorities at the Ankara Summit
The recent NATO summit in Ankara demonstrated a clear structural evolution in how European capitals approach collective defense, according to Norwegian and international observers. Foreign Minister Espen Barth Eide (Ap) told Dagsavisen that the summit “went as well as it could have gone,” despite initial uncertainties heading into the meetings. Eide highlighted that allies reached a broad consensus affirming Article 5—the mutual defense clause ensuring an attack on one member is treated as an attack on all—while preparing the alliance for a strategic pivot back to local European defense capabilities.
NUPI researcher Marianne Riddervold observed a distinct shift away from past diplomatic strategies centered primarily on keeping the US president pacified. “Now it is more focus on Europe’s own capacity building than on stroking Trump with the grain,” Riddervold told Dagsavisen. She added that while Northern and Eastern European states view Russia as an immediate territorial threat, Southern European members like Spain place greater emphasis on economic stability, migration, and healthcare challenges.
Frequently Asked Questions
Why did Donald Trump threaten to cut off trade with Spain?
According to reports in Dagsavisen, Trump threatened a trade embargo because Spain refused to permit US forces to use Spanish military bases at Rota and Morón for the war in Iran, and because Spanish defense spending falls short of Trump’s target of 5 percent of GDP.
How much does Spain spend on defense?
Spain invests just over 2 percent of its GDP into its defense budget, which expert José María Izquierdo confirms satisfies all required military capabilities mandated by NATO.
What is NATO Article 5?
Article 5 is the article which establishes that an attack on a NATO country is considered an attack on all, and that NATO members shall help the attacked party.
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