Trump orders halt to trade with Spain as NATO row deepens over defence,Iran

Donald Trump, United States President on Wednesday ordered an immediate halt to trade with NATO ally Spain, sharply escalating a dispute over defence spending and Spain’s refusal to support Washington’s military campaign against Iran.

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The order, announced during the NATO summit in Ankara, marked Trump’s strongest move yet against the Spanish government, despite European Union rules that require trade negotiations to be handled collectively rather than by individual member states.

According to Reuters, Trump instructed Treasury Secretary Scott Bessent to stop trade with Spain immediately, reviving tensions that European leaders had hoped to avoid at the summit.

“I don’t want to do any trade with them, alright?” Trump said as he turned to Bessent. “Take it immediately. 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.”

The move is the second time Trump has directed his administration to cut trade with Spain over Madrid’s refusal to back NATO’s new defence spending target of five percent of gross domestic product. After making a similar threat in March, however, trade between the two countries continued without disruption.

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Trump openly criticised Spain during a meeting with NATO Secretary General Mark Rutte, saying the country was refusing to contribute enough to the alliance. Rutte acknowledged Spain’s increased military spending but suggested more work remained.

“Spain made a huge step last year,” Rutte said, referring to Madrid’s decision to raise defence spending to two percent of GDP. “There are still issues we have to solve.”

Spain dismissed Trump’s comments, insisting relations with Washington remain strong. In a statement, the office of Prime Minister Pedro Sanchez described the remarks as “business as usual” and said there was no intention to alter the “excellent” relationship between the two countries.

The Spanish government also noted that it runs a trade deficit with the United States and stressed that trade policy is determined by the European Union, meaning individual member states cannot be targeted through separate trade agreements.

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The latest clash also reflects wider disagreements between Washington and Madrid over the Iran conflict. Trump has repeatedly criticised Sanchez after Spain declined to allow the United States to use Spanish airspace or military bases for operations linked to the war. The two countries jointly operate important naval and air bases in southern Spain.

The dispute unfolded as Trump also renewed pressure on another NATO ally, Denmark, by repeating his claim that the United States should control Greenland. Denmark responded by saying it would defend every inch of its territory.

Spain exports olive oil, vehicle parts, steel and chemicals to the United States. While Trump’s latest order raises fresh uncertainty for businesses, analysts say Spain is less exposed to possible United States trade restrictions than several other European economies, according to Reuters.