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Trump says Spain will pay more in trade deal after refusal to meet NATO defense spending targets

Trump says Spain will pay more in trade deal after refusal to meet NATO defense spending targets

Straits Times6 hours ago

U.S. President Donald Trump speaks during a press conference, at the NATO summit in The Hague, Netherlands, June 25, 2025. REUTERS/Brian Snyder
Trump says Spain will pay more in trade deal after refusal to meet NATO defense spending targets
THE HAGUE - President Donald Trump said on Wednesday that the United States will make Spain pay twice as much for a trade deal after the country's refusal to meet a NATO defense spending target of 5% of gross domestic product.
NATO leaders backed a big increase in defense spending on Wednesday that Trump had demanded, but Spain declared that it does not need to meet the goal and can meet its commitments by spending much less.
Trump called Spain's decision "very terrible" and vowed to force the country to make up the difference.
"We're negotiating with Spain on a trade deal. We're going to make them pay twice as much," Trump said.
As a member of the European Union, Spain does not negotiate directly with the United States on trade - the European Commission handles those talks for the entire 27-nation bloc.
Trump may have a hard time following through on his threat to punish Spain through a trade pact unless he gets language on the issue into a broader EU agreement.
The Spanish Ministry of Economy declined to comment. REUTERS
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A decade later, Apple's leaders and investors are surely grateful it was ahead of the curve. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It's hard to explain companies' lack of preparation for such shocks as a product of anything other than an American business community trapped in an outdated political paradigm. US business has thrived in an environment where the government has typically shown deference to private sector interests and exercised limited intervention. That paradigm held for so long that it became as much of an unquestioned assumption as the law of gravity. Unlike gravity, though, it was an artifact of its time. That reality shattered with the 2008 financial crisis, which required the US government to deploy trillions of dollars to bail out the financial sector. The backlash left both major political parties far more open to market interventions – and far less likely to defer to business. Today, the three most popular American politicians currently in office are Senator Bernie Sanders, Senator Elizabeth Warren, and Representative Alexandria Ocasio-Cortez; all support increased regulation, taxes and government spending. (Trump, hardly a libertarian avatar, comes in fourth.) Adding to the importance of a deep understanding of government and politics is the return of militarised competition between major states. The globalisation that flourished after the fall of the Soviet Union has been rocked by surging competition between the US and China and the hostility between Nato and Russia that culminated in the invasion of Ukraine. Economics and globalism no longer dependably trump national security. 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