Donald Trump has vowed to make Spain pay after it refused to meet the Nato defence spending target of five per cent of GDP.
The US President said the decision would mean a tougher trade terms for the European country.
Like all European Union members, Spain was hit by US tariffs of 20 per cent, with further tariffs threatened to be on the horizon.
Speaking at a news conference at Nato’s annual summit at The Hague, Trump said it was “terrible” that Spain would not commit to meeting the target by 2035.
Donald Trump has vowed to make Spain pay after it refused to meet the NATO defence spending target of 5 per cent of GDP
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He said: "You know they are doing very well. The economy is [doing] very well. And that economy could be blown right out of the water with something bad happening.
"You know what we’re going to do? We’re negotiating with Spain on a trade deal and we’re going to make them pay twice as much — and I’m actually serious about that. I like Spain … it’s a great place and they are great people, but Spain is the only country out of all of the countries that refuses to pay.
Trump slammed the move as "unfair" to the US.
He added: "So, they want a little bit of a free ride, but they will have to pay it back to us on trade because I am not going to let that happen. It’s unfair."
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Donald Trump said the decision would mean a tougher trade deal for the southern European country
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During the gathering of world leaders in The Hague, Nato allies agreed to an increase of more than double of their defence spending target from two per cent of GDP to five per cent by 2035.
The military bloc said it was “united in the face of profound security threats and challenges,” in particular the long-term threat posed by Russia to Euro-Atlantic security and the “persistent threat” of terrorism.
However, Spanish Prime Minister Pedro Sanchez said the country would meet Nato’s new capabilities targets.
The measures members should take to defend themselves and the broader military alliance.
The Spanish Prime Minister, Pedro Sanchez, said the country would meet NATO’s new capabilities targets
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Sanchez said that Madrid considers the current defence spending of two per cent of GDP as “sufficient, realistic and compatible with the welfare state”.
In addition, Sanchez also thanked Nato allies for “respecting Spain’s sovereignty.”
The Spanish Prime Minister previously described Trump's actions as "terrible news for the world", "unintelligent" and "a return to 19th-century protectionism".
He said: "This tariff attack by the US administration makes no distinction between friends and enemies, it doesn't discriminate based on ideology or trade balance; it's against everyone and everything."
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