Spanish Prime Minister Pedro Sánchez has stuck by his decision to break with NATO’s spending goal, opting out of raising defense spending to 5% of GDP. The move comes as US President Donald Trump has threatened tariffs on Spanish goods, including steel, cars, and olive oil.
Sánchez secured an exemption from the alliance, allowing Spain to spend up to 2.1%, which he believes is “sufficient and realistic”. However, Trump criticized the decision, saying it’s a “free ride” that will be paid back through higher tariffs.
The move has sparked debate about how this will play out, with some experts suggesting it may target specific Spanish products. Spain was already under pressure at home due to corruption cases involving Sánchez’s inner circle and calls for early elections.
Sánchez’s decision is seen as a strategic move, both domestically and internationally. The country has struggled with defense spending, spending only 1.28% of its GDP on defense last year. This decision may have implications for Spain’s relationships with its NATO allies and the US.
Trump’s threat of tariffs highlights the risks of Spain’s opt-out from the spending goal. Some industry experts warn that certain sectors, such as steel, cars, and olive oil, could be impacted by these tariffs.
Source: https://apnews.com/article/donald-trump-spain-pedro-sanchez-tariff-a84ed280548742e2ba79822d08a36473