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Will Make Spain "Pay": Trump Threatens Tariffs Over NATO Defense Spending Holdout
• Zero HedgeTrump lavished rare praise on NATO members for reaching an agreement for each country to hit the 5% of GDP on defense spending target over the next ten years. Spain has been a notable hold-out and resistant. He used the opportunity to make clear his intention to make Spain "pay".
And Trump let it be known in front of the NATO audience: "I think Spain's terrible what they've done. No, I do. They're the only country that won't pay the full — they want to stay at 2 percent," Trump answered a question posted by a Spanish reporter. He laid out his response will be to make Spain "pay twice as much" as part of a trade deal. But this raises the difficulty of how could the US directly tariff Spain?... given that of course Spain is part of the European Union and Washington is negotiating with the EU as a trading bloc. Still, he said this:
"Spain is the only country refusing to pay (for defense – ed.). So I will make you pay for trade. I think we will double the tariffs on Spain. We will make you pay."
"I do like Spain, by the way," Trump said to the reporter in a conciliatory moment, before quickly pivoting to: "I think it's unfair that they're not paying." He followed with:
"If the allies raise spending to 5%, then we will all be spending about a trillion dollars a year. This is a great achievement for Europe."