SPAIN: Sanchez-US Tariffs "Unjust" And "Doubly Unfair"

Delivering doorstep comments at the European Council summit in Brussels, PM Pedro Sanchez says that US tariffs on Spain are "very unjust" and "doubly unfair". 

• At the NATO summit, Sanchez says he is "very satisfied" with the outcome, claiming that "we will achieve capabilities required while maintaining our social cohesion and welfare". There are major doubts within the defensive alliance that Spain will stick to the '3.5%+1.5%' defence spending target agreed to by NATO leaders, with Sanchez saying to NATO that he will hit the target, but domestically saying there is no need for Spain to spend above 2.1% of GDP on defence.
• This stance resulted in a furious broadside from US President Donald Trump, who called Spain's actions "terrible" and promised to make Spain "pay double", and that he would oversee negotiations personally.
• It remains to be seen how the US can target Spain directly, given that its tariffs apply to the whole EU, and it is Brussels that is negotiating with the White House. Tariffs targeting specific goods that Spain exports to the US are one option, but this would risk spillover impacts on other countries.
• At the start of 2025, unconfirmed reports in Moroccan media claimed that the US was considering recognising Morocco's sovereignty over the Spanish exclaves of Ceuta and Melilla. This prospect was swiftly slapped down by the Spanish foreign minister and appears unlikely at present. Nevertheless, a major collapse in US-Spain relations could see such a scenario become a more feasible possibility.