The European Commission and the Spanish government have condemned the last threat of US President Donald Trump on Wednesday to impose higher duties on Madrid because of its refusal to fulfill NATO’s proposed goal for defense spending.

Trump said he was “very unhappy” with Spain, as he was the only country to reject the new 5% of GDP spending target, adding that he was thinking of punishing the Mediterranean country. He had previously proposed that Spain be forced to “pay twice” in trade negotiations.

Commercial policy is under Brussels’ jurisdiction and the Commission will “respond properly, as always, to any measures taken against one or more of our Member States,” said Commission spokesman Olf Gil at a press conference.

The trade agreement between the European Union and the United States signed in July is the appropriate platform for addressing any issues, Gil added.

What do Spain and NATO say

“The debate on defense spending is not about increasing spending for the sake of growth, but to respond to real threats,” the Spanish Ministry of Economy and Trade said in a statement. “We do our duty to develop the necessary skills and to contribute to the collective defense of our allies.”

Spain has more than doubled the nominal defense spending of 0.98% of gross domestic product in 2017 in 2% this year, equivalent to approximately 32.7 billion euros ($ 38 billion).

Defense Minister Margarita Robs said the allies did not discuss the 5% target for 2035 at Wednesday’s meeting because they prioritized the current situation in Ukraine, but did not completely rule out a change in Spain’s position, Reuters notes.

What can Washington do

The targeted US duties against individual EU Member States are rare, but there are previous ones, said Ignacio Garcia Bercero, a senior researcher at the financial Tank Tank Bruegel based in Brussels.

In 1999, the US imposed 100% punitive tariffs on the EU on products such as chocolate, pork, onions and truffles as retaliation for the ban on introduction by the EU Beef Meat treatment, but was excluded by Britain, which was still a member of it.

The US could impose anti -dumping sanctions on European products mainly produced in Spain, said Juan Carlos Martinez Lazaro, a professor at IE Business School in Madrid.

In 2018, Washington imposed a combination of more than 30% on Spanish black table olives, at the request of California olive growers. Spain’s share in the US market decreased from 49% in 2017 to 19% in 2024.

Another option would be to transfer the US Navy and Air Bases to Southern Spain to Morocco – an idea proposed by former Trump government official Robert Gridway – who would harm local economies due to the loss of thousands of indirect jobs.