Trump Orders Trade Cuts with Spain Over NATO Spending Dispute

During the NATO summit in Ankara, President Donald Trump ordered the cessation of all trade with Spain, calling it a "terrible partner" and a "wasted cause." Source: ABC, El Español The order, directed to Treasury Secretary Scott Bessent, includes suspending visits and preparing a list of Spanish products for potential embargo. Source: ABC

What happened

Trump publicly instructed the Treasury, Commerce, and USTR to present a menu of Spanish goods—such as olive oil, wine, and industrial components—that could be targeted. Source: ABC He cited Spain's refusal to raise defense spending to 5% of GDP and its denial of base use for operations against Iran. Source: El Español

The reaction

The Spanish government downplayed the threat, stressing that trade policy is an EU competence and that the US maintains a trade surplus with Spain. Source: El Español, El Mundo Moncloa insisted on the "magnificent" relationship and that private companies drive economic ties. Source: El Español

Economic impact

Bilateral trade stands at €47 billion annually. US imports from Spain fell 14% in early 2026, while Spanish exports to the US dropped 8% in 2025. Source: El Español, El Mundo US net investment in Spain plummeted in Q1 2026 due to rising disinvestments.