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U.S. President Donald Trump has ordered an immediate cessation of all trade with Spain, a NATO ally, escalating a dispute over defense spending and the Iran war. The directive, issued during a NATO summit in Ankara, Turkey, targets Spain for its refusal to meet NATO's defense spending target of 5% of GDP. Trump declared Spain a "terrible partner" and instructed Treasury Secretary Scott Bessent to halt commerce, stating, "I don't want to do any trade with them, alright? Don't even talk to them. They're hopeless. They're bad people... They make so much money with us, and we're going to see that they make a lot less."

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I don't want to do any trade with them, alright? Don't even talk to them. They're hopeless. They're bad people... They make so much money with us, and we're going to see that they make a lot less.

This is the second time Trump has attempted to halt trade with Spain over the issue. Following a similar promise in March, trade between the two nations continued normally. NATO Secretary General Mark Rutte attempted to mediate, noting Spain's increased spending to 2% of GDP but acknowledging that "there are still issues we have to solve." Trump also expressed frustration over Spain's refusal to allow the U.S. to use its airspace or bases for the Iran war.

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there are still issues we have to solve

Despite the U.S. president's actions, Spanish Prime Minister Pedro Sanchez downplayed the rift. He described his conversation with Trump during the summit as "very cordial" and stated that they discussed topics like the soccer World Cup and golf, not military spending. Sanchez reiterated Spain's reliability as a NATO ally, announcing a new deployment of Spanish troops to Finland for NATO's Arctic Sentry mission. He emphasized that Spain has been one of NATO's fastest-growing military spenders and that its strong economic growth provides fiscal flexibility for defense commitments. Sanchez also highlighted the enduring, strong trade ties between Spain and the U.S., noting that these are forged by private companies and are not dependent on government ideology. His office pointed out Spain's trade deficit with the U.S. and stated that EU customs rules prevent unilateral trade actions.

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very cordial