Madrid said on Thursday that U.S. President Donald Trump had softened his rhetoric on Spain, hours after threatening to halt trade with the NATO ally, as he recognized that Madrid’s contribution to the alliance had surged in recent years.“I did have a problem, and I still do,” Trump told reporters aboard Air Force One on his way back to the United States after the NATO summit in Ankara. “But Spain, they came all the way back today. Spain was very generous today.” Asked what Spain had done, he said: “They met requests for substantial payments.”A spokesman for Spanish Prime Minister Pedro Sánchez said this was understood to mean Madrid was complying with NATO’s previous defense spending target of 2% of GDP. At the summit, Sanchez stressed that Spain will achieve this goal this year, more than doubling nominal defense spending from 0.98% of GDP in 2017 to nearly 33 billion euros.Trump had earlier called Spain a “terrible partner” and ordered an immediate halt to all trade with the country over disputes over defense spending and the war with Iran. However, he has repeatedly criticized Spain for not agreeing to a new defense target of 5% of GDP by 2035, which Madrid said would require cuts to social benefits.
US considers ‘menu’ of banned products from Spain
It’s unclear what Trump’s softening of rhetoric might mean for his trade threats. Asked about next steps, a U.S. official told Reuters that federal agencies would provide Trump with a “menu” of Spanish products that could be embargoed.Trade lawyers said Trump could invoke the International Emergency Economic Powers Act to impose a full or partial embargo on Spanish imports. His first administration imposed 30% anti-dumping duties on Spanish black olives in 2018.Defense Minister Margarita Robles is scheduled to meet with U.S. Ambassador Benjamin Leon later on Thursday for a “working meeting,” according to the Spanish government’s agenda.
Opposition criticizes Sanchez
Some in the main opposition Popular Party blamed Sanchez for the altercation but said they stood with the country. A senior PP official emphasized the interdependence between Spanish and American companies, saying “economic realities take precedence over grandiose statements.”Santiago Abascal, leader of the far-right Vox party and a Trump ally, said the tensions were “absolutely dramatic” and accused Sanchez of “undermining Spain’s credibility on the world stage”.El Mundo quoted a source in the Spanish delegation as saying Madrid likened the dispute to a staged battle without an actual conflict and that despite Trump’s criticism, officials had not seen any economic consequences or a drop in investment in Spain.
