Overview

• President Trump warned Spain could face punishment, including possible tariffs, for refusing to raise defense outlays to 5% of GDP.
• The European Commission vowed to respond to any measures against a member state and underscored that trade with the United States is an EU competence.
• Spanish government sources downplayed the threat, pointing to EU protections and describing relations with Washington as normal.
• Madrid remains anchored to the 2% target and faces parliamentary constraints that make a rapid move to 5% politically and fiscally difficult.
• Defense Minister Margarita Robles signaled openness to spending above 2.1% of GDP as EU leaders press for higher benchmarks such as 3% under a broader rearmament push.