Key facts
- President Donald Trump softened his rhetoric towards Spain after learning of its increased contributions to NATO.
- Trump had previously threatened to halt trade with Spain and called it a 'terrible partner'.
- Spain's defense spending is set to reach 2% of GDP this year, more than doubling from 2017.
- Trump's shift in tone followed a 'very cordial' conversation with Spanish Prime Minister Pedro Sanchez at the NATO summit.
- The U.S. is reviewing potential embargoes on Spanish products, though the impact of Trump's softened rhetoric on trade threats remains unclear.
U.S. President Donald Trump moderated his stance on Spain at the NATO summit after being informed of the country's increased defense spending and contributions to the alliance. Hours after threatening to halt trade and calling Spain a 'terrible partner,' Trump stated that Spain had been 'very generous' and honored a request for 'lots of payments.' This shift came after Spanish Prime Minister Pedro Sanchez highlighted that Spain would reach NATO's former defense spending target of 2% of GDP this year, more than doubling its nominal spending since 2017. Despite the conciliatory remarks, Trump still expressed concerns about Spain not meeting a new objective for NATO members to spend 5% of GDP on defense by 2035. The implications for Trump's earlier trade halt threats remain unclear, though U.S. officials are reportedly preparing a list of Spanish products for potential embargoes. Spanish officials, however, downplayed the rift, likening the dispute to a staged event and noting no detected economic consequences.