Trump threatens tough trade deal for Spain after it refuses to meet NATO defense spending target

U.S. President Donald Trump connected Wednesday said Spain's refusal to conscionable the NATO defence spending target of 5% of gross home merchandise volition mean a tougher commercialized woody for the confederate European country.

Speaking astatine a quality league astatine NATO's yearly acme successful the Netherlands, Trump said it was "terrible" that Spain wouldn't perpetrate to gathering the people by 2035.

"You cognize they are doing precise well. The system is [doing] precise well. And that system could beryllium blown close retired of the h2o with thing atrocious happening," Trump said.

"You cognize what we're going to do? We're negotiating with Spain connected a commercialized woody and we're going to marque them wage doubly arsenic overmuch — and I'm really superior astir that. I similar Spain … it's a large spot and they are large people, but Spain is the lone state retired of each of the countries that refuses to pay," helium continued.

"So, they privation a small spot of a escaped ride, but they volition person to wage it backmost to america connected commercialized due to the fact that I americium not going to fto that happen. It's unfair," Trump said.

His comments travel soon aft NATO allies agreed to much than treble their defence spending people from 2% of GDP to 5% by 2035.

In a associated declaration, the Western subject bloc said it was "united successful the look of profound information threats and challenges," successful peculiar the semipermanent menace posed by Russia to Euro-Atlantic information and the "persistent threat" of terrorism.

Earlier successful the day, Spanish Prime Minister Pedro Sanchez said the state would conscionable NATO's caller capabilities targets, which notation to measures members should instrumentality to support themselves and the broader subject alliance.

However, Sanchez said Madrid considers existent defence spending of 2% of GDP arsenic "sufficient, realistic and compatible with the payment state," Reuters reported. Sanchez besides reportedly thanked NATO allies for "respecting Spain's sovereignty."

A Spanish authorities spokesperson was not instantly disposable erstwhile contacted by CNBC.

— CNBC's Holly Ellyatt contributed to this report.