The European Commission and Spain’s government have 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 on Tuesday that he was “very unhappy” with Spain for being the only NATO member to reject the new spending objective of 5 percent of economic output , adding that he was considering punishing the Mediterranean country.

“I was thinking of giving them trade punishment through tariffs because of what they did, and I think I may do that,” Trump added. He had previously suggested making Spain “pay twice as much” in trade talks.

Trade policy falls under the remit of Brussels, and the European Commission would “respond appropriately, as we always do, to any measures taken

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