US President Donald Trump has warned that he may impose tariffs on Spain after the country refused to increase its defense spending in line with NATO's new target of 5% of Gross Domestic Product (GDP).
In a press conference at the White House, Trump stressed his dissatisfaction with Madrid, describing Spain as the only NATO member that has failed to meet the alliance's new commitments.
He also hinted at trade sanctions if Spain does not change its stance.
Trump is considering punishing Spain with tariffs, saying the government led by Prime Minister Pedro Sánchez is not respecting NATO.
The statement also sparked diplomatic concerns when Trump suggested that NATO re-evaluate Spain's membership in the alliance.
However, Madrid maintains that the 5% target is unrealistic and reiterates its country's commitment to collective security through participation in military missions in Eastern Europe and the Mediterranean.
Trump's tough action is seen as part of his administration's new approach to pressuring European allies to shoulder more defense costs, highlighting new tensions in transatlantic relations ahead of a crucial NATO meeting next month.