Trump threatens to double tariffs on Spain for refusing to adopt 5% defence spend
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More news: Responding to a question about Spain’s exemption from the increase in defence spending to 5% from member states in a press conference in The Hague, Trump criticised Spain’s move to opt-out of the spending increase.
Spain is the only member nation which did not commit to increase its defence spending in line with with other nations at 5%.
Criticising the decision, Trump said he would “make them pay” by negotiating directly with Spain to increase their trade tariffs. The 9 July deadline for the European Union to negotiate a deal with the US on trade tariffs is fast approaching.
Trump said: “We’re negotiating with Spain on a trade deal. We’re going to make them pay twice as much. And I’m actually serious about that,” he said. “I like Spain. I have so many people from Spain that it’s a great place, and they’re great people, but Spain is the only country, out of all of the countries that refuses to pay, you know.”
He said that Spain was the “most hostile” towards paying 5% on defence.
Following the comment’s, Spain’s Ibex-35 equity index continued declines to a session low, slipping 1.5% as of 4:35pm in Madrid, making it the worst performing major European benchmark on Wednesday.
Trump says he stands with NATO’s Article 5
More news: Speaking to press after the NATO summit, when asked to clarify his stance on Article 5, a central tenet of the alliance which refers to mutual defence, President Donald Trump said “That’s why I’m here. If I didn’t stand [with the alliance], I wouldn’t be here.”
Asked whether he would still defend Nato members if they did not pay their fair share, Trump said: “Of course — why would I be here?”
When asked about Article 5 and whether it could be open to interpretation, in reference to Trump’s comments prior to the Summit, NATO chief Mark Rutte said: “Article 5 is absolutely clear and at the same time we have always said we will never go into details as to when exactly Article 5 will be triggered,” he said. “Why not? Because we don’t want to make our adversaries any wiser.”
Rutte also said that he believes Trump is “very predictable,” adding “I have known him for 10 years. He’s a good friend. I trust him,” Rutte told reporters. “He is a man of strength, but also a man of peace.”
NATO allies commit to defence spending of 5% of GDP, collective defence
More news: NATO leaders have reaffirmed their commitment to collective defence and agreed on their new defence spending target of 5% of GDP.
According to Reuters, the Summit declaration reads:
- We reaffirm our commitment to collective defence as enshrined in Article 5
- Allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035
- Allies will allocate at least 3.5% of GDP to resource core defence requirements
- Allies will account for up to 1.5% of GDP annually to protect our critical infrastructure, to ensure resilience and strengthen our defence industrial base
NATO chief Mark Rutte is due to speak with reporters in The Hague shortly to provide further detail on the outcome of the Summit.
Key points from the statement from NATO on the deal include:
On Article 5: “We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all. We remain united and steadfast in our resolve to protect our one billion citizens, defend the Alliance, and safeguard our freedom and democracy.”
On the defence spending increase: “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, Allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035 to ensure our individual and collective obligations, in accordance with Article 3 of the Washington Treaty.”
The 5% defence spending will be split into two categories: “Allies will allocate at least 3.5% of GDP annually based on the agreed definition of NATO defence expenditure by 2035 to resource core defence requirements, and to meet the NATO Capability Targets. Allies agree to submit annual plans showing a credible, incremental path to reach this goal.”
Additionally, “allies will account for up to 1.5% of GDP annually to inter alia protect our critical infrastructure, defend our networks, ensure our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base.”
Trump says US with NATO ‘all the way’ as Summit begins
The news: President Trump reassured NATO allies that he is “with them all the way,” having raised concerns that the alliance’s mutual defence pact was open to interpretation the day prior.
The context: When asked about his commitment to NATO upon his arrival at the summit on Wednesday, Trump said “NATO is going to become very strong with us” and that “we’re with them all the way.”
While en route to The Hague on Tuesday, Trump had sparked alarm when he told reporters that NATO’s Article 5 clause, a central tenet of the alliance which refers to mutual defence, “depends on your definition.” He said there are “numerous definitions” of Article 5, but that “I’m committed to being their friends. I’m going to give you an exact definition when I get there.”
Trump’s comments on Wednesday alongside NATO chief Mark Rutte also focused on the alliance’s efforts to push European members to increase defence spending to 5% of GDP. The summit is expected to endorse the higher defence spending goal in response to Trump’s demands and European concerns that Russia poses a growing security threat.
“I don’t know if you’ve taken the vote or you’re going to take the vote, but I’ve been asking them to go up to 5% for a number of years, and they’re going up to 5%,” Trump said.
Spain has resisted demands to meet the new spending target, prompting US Secretary of State Marco Rubio called the exemption a “big problem” in an interview with Politico.
Trump is set to meet with Ukraine leader Volodymyr Zelensky later on Wednesday. When asked what he planned to achieve from the meeting Trump said: “I don’t know, I assume we’re going to be discussing Ukraine. It seems like the most likely. We’ll see.”
