Socialist Spain brushes off Trump tariff/naval base threats over Madrid's paltry defence spending

The European Commission and Spain's socialist government on Wednesday dismissed US President Donald Trump's latest threat to impose higher tariffs on Madrid over its refusal to meet his proposed NATO target for defence spending.

Trump said he was "very unhappy" with Spain for being the only country to reject the new spending objective of five per cent of economic output, adding that he was mulling punishing the country. He had previously suggested making Spain "pay twice as much" in trade talks.

Trade policy falls under Brussels' remit and the commission would, "respond appropriately, as we always do, to any measures taken against one or more of our member states," commission spokesperson Olof Gill said in a press briefing.

The trade deal between the European Union and the United States signed in July was the right platform to address any issues, Gill added.