Trump’s Tariff Threat to ⁢Spain Faces EU Roadblock

Updated June 26, 2025
⁢

Donald Trump’s threat to impose double‍ tariffs on Spain, as retaliation for⁤ not meeting NATO’s defense⁣ spending target of 5% of GDP, is running into a notable obstacle: european Union trade policy. trump said he would “make” Spain pay “with a double tariff in the commercial agreement” being negotiated with the EU and that he would personally discuss the matter with Spanish President Pedro Sánchez.

Though, EU treaties prevent member countries from independently negotiating commercial agreements. Sánchez can rely on Brussels to deflect the tariff threat, shifting the political⁤ tension to the European Commission.

Trump voiced his displeasure ⁢with allies not ‍meeting U.S. levels of defense investment within NATO. Sánchez’s explicit refusal to commit to the 5% target-a figure exceeding current spending‍ by any member nation, including the U.S.-angered Trump, who promised to respond with tariffs.

“What Spain has done is terrible. The only country ‍that⁤ wants to stay in 2%. ⁤It is indeed terrible,” Trump said.⁣ He added that ‍while Spain’s economy is doing well, “it could fly through the air if something happened to it,” and threatened to⁣ “make them double” via trade negotiations.

Spain is not directly negotiating a trade agreement ⁢with the U.S., and Sánchez⁣ is prohibited from doing so.Article 28 of the Treaty of the european Union forbids individual‍ countries from setting tariff rates with non-EU⁤ countries.This provision prevents larger member states from securing preferential tariffs,⁣ and also protects members from external tariffs designed to punish individual nations.

The free ⁣movement of goods within the EU would make it easy to circumvent tariffs by routing Spanish products through neighboring countries.

Spanish Economy Minister Carlos Corps responded to Trump’s threat by noting that negotiations occur within the framework of the European Commission, which negotiates on behalf of all member states, not just Spain.

EU member countries are unlikely to accept a third party ⁣singling out one of them,as it could fragment the single market.Allowing Trump to punish Spain could open the door for ⁤similar tariffs on other countries, ⁣such as Ireland for pharmaceutical exports or Germany compared to Estonia.

The political cost of defending Spain will likely fall on Brussels, which will have to tell Trump that ⁤he cannot impose higher ⁢tariffs on ⁤Spain⁣ than on ⁢other EU countries. This adds another hurdle to already tense negotiations, especially with the looming July 9 deadline for the potential reinstatement of tariffs.

French ⁤President Emmanuel Macron has suggested that the EU’s commitment to commercial peace should prevent trade wars within NATO.He insisted that Trump should lower existing tariffs.

what’s next

The EU now faces the⁢ challenge of balancing its trade negotiations with the U.S. while protecting its member states from targeted economic pressure. The coming weeks will be crucial in⁣ determining whether a trade war can be averted and whether Trump will extend the⁣ deadline for tariff implementation.