Madrid said on Thursday that US President Donald Trump had softened his rhetoric on Spain, hours after threatening to block trade with the NATO ally, as he was made aware of Madrid’s increase in contributions to the alliance in recent years.While returning to the United States after the NATO summit in Ankara, Trump told reporters on Air Force One: “I had problems, and I still have. But Spain, they came back today. Spain was very generous today.” Asked what Spain had done, he said: “They respected the request for a lot of payments.”A spokesman for Spanish Prime Minister Pedro Sanchez said it was believed to be a reference to Madrid complying with NATO’s prior defense spending target of 2 percent of GDP. At the summit, Sanchez highlighted that Spain would reach that target this year after doubling nominal defense spending from 0.98 percent of GDP in 2017 to about €33 billion.Trump previously called Spain a “terrible partner” and ordered an immediate halt to all trade with the country over a dispute over defense spending and the Iran war. However, he has repeatedly criticized Spain for not agreeing to a new defense target of 5 percent of GDP by 2035, which Madrid says would require cuts in social benefits.
US considering ‘menu’ of Spanish products for ban
It was not immediately clear what Trump’s softening of rhetoric might mean for his trade threat. Asked about next steps, a US official told Reuters that federal agencies would present Trump with a “menu” of Spanish products that could be banned.Trade lawyers said Trump could invoke the International Emergency Economic Powers Act to impose a full or partial ban on Spanish imports. His first administration imposed a 30 percent anti-dumping tariff on Spanish black olives in 2018.Defense Minister Margarita Robles was due to meet with US Ambassador Benjamin Leon for a “working meeting” later on Thursday, according to the Spanish government’s agenda.
The opposition criticized Sanchez
Some in the main opposition People’s Party blamed Sanchez for the controversy but said they stood with their country. “Economic reality takes precedence over big statements,” said a senior PP official, highlighting the interdependence between Spanish and American companies.Santiago Abascal, leader of the far-right Vox party and a Trump ally, said the tensions were “absolutely dramatic” and accused Sanchez of “destroying Spain’s credibility on the world stage.”Sources in the Spanish delegation cited by El Mundo said Madrid has compared the dispute to a stage fight without real conflict, and that officials have not detected any economic consequences or a decline in investment in Spain despite Trump’s criticisms.