U.S. President Donald Trump announced on Wednesday that he has ordered an immediate cutoff of all U.S. trade with Spain, dramatically escalating tensions with one of Washington’s NATO allies during the alliance’s summit in Ankara, Türkiye.
Speaking alongside NATO Secretary General Mark Rutte, Trump said he had instructed Treasury Secretary Scott Bessent to halt trade relations with Spain, accusing Madrid of being a “terrible partner” within the alliance.
The move follows months of growing disagreements between Washington and Madrid over NATO defence spending and Spain’s refusal to support certain U.S. military operations linked to the conflict with Iran. Trump has repeatedly criticized Spain for declining to meet NATO’s proposed target of spending 5% of its gross domestic product (GDP) on defence and for denying U.S. access to Spanish military bases and airspace during operations related to Iran.
Trump argued that the United States should no longer maintain commercial ties with a country he believes is failing to meet its alliance commitments. His remarks overshadowed NATO discussions focused on collective security, support for Ukraine, and the deteriorating situation in the Middle East.
Spain moved quickly to downplay the announcement. Prime Minister Pedro Sánchez’s office said trade relations between the two countries remain mutually beneficial and stressed that Spain’s trade policy is coordinated through the European Union, meaning any significant changes would involve broader EU-U.S. negotiations rather than bilateral action alone.
The announcement also rattled financial markets, with Spain’s benchmark IBEX 35 index falling sharply as investors reacted to the prospect of a trade dispute with one of the country’s largest non-European trading partners. Several major Spanish banking and industrial stocks declined, although rising oil prices helped lift shares in the energy sector.
Trump’s latest comments add another layer of uncertainty to transatlantic relations as NATO leaders seek to project unity amid escalating tensions with Iran and broader global security challenges. Whether the proposed trade cutoff will be formally implemented remains unclear, but the announcement underscores the widening policy differences between Washington and Madrid on defence, foreign policy, and alliance responsibilities.
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