Spain refuses to meet NATO defense spending targets, defying allies

In late June 2025, Spain's Prime Minister Pedro Sánchez announced that Spain had reached an agreement with NATO to be excluded from a 5 percent of GDP defense spending target. He emphasized that while Spain respects other nations' desires to increase their defense investments, it will not do so. This position has put Spain at odds with NATO allies and the U.S. President Donald Trump, who criticized Spain's defence spending decisions. Trump threatened to impose higher tariffs on Spain for its refusal to align with NATO goals. As of 2024, Spain's defense spending was significantly below the NATO target, raising concerns about its commitment to collective security and alliance roles in the Euro-Atlantic area. The decision came amidst ongoing debates around defense budgets in the context of amplifying global security threats. Spain had become the only NATO member identifying as having an opt-out on the new defense spending targets, which had gone into effect amid increasing tensions between member states regarding military readiness and spending commitments. Other NATO members are encouraged to invest more heavily in their defense capabilities, with expectations set at raising spending close to 2 percent of GDP. Trump's remarks during a summit expressed discontent with Spain's stance, labeling the country's refusal to meet spending commitments as unacceptable. Secretary-General of NATO, Mark Rutte, contradicted Sanchez' claim of an exemption, indicating potential repercussions for neglecting to meet defensive obligations. The implications of these developments suggest a growing rift between Spain and its NATO allies, creating tensions that could impact Spain's strategic partnerships and trade relationships with key allies. Overall, the unfolding situation illustrates the complexities of international military alliances and the pressures on member nations to contribute equitably to shared defense funding amid a backdrop of shifting geopolitical dynamics. Spain's decision not to adhere to NATO's recommendations may also result in economic adjustments, as the country could face increased tariffs under Trump's direct negotiation stance, complicating its trade landscape far beyond military concerns.