ANKARA — US President Donald Trump escalated his confrontation with Spain on Wednesday, announcing that he had instructed Treasury Secretary Scott Bessent to halt all trade with the country. Speaking alongside NATO Secretary General Mark Rutte at the alliance's summit in Ankara, Trump described Spain as a 'terrible' partner and a 'wasted cause.'
'We don't want to do any trade business with Spain anymore,' Trump told reporters, reviving a threat first made in March after Madrid refused to allow the use of the Rota and Morón military bases for US bombing operations against Iran.
The remarks came as Trump continued to pressure European allies to increase defense spending to 5% of GDP, a target far above the current NATO guideline of 2%. Spain, like several other member states, has resisted such demands, arguing that its contributions are already substantial.
Madrid's Measured Response
At the Moncloa Palace, sources close to Prime Minister Pedro Sánchez said the government had anticipated Trump's attacks and was responding with 'calm.' Sánchez traveled to Ankara armed with data to counter the US president's criticisms.
Spain points out that it has already reached 2% of GDP in defense spending, placing it seventh among NATO's 32 members. According to NATO's own technical projections, a target of 2.1% would be sufficient for Spain to meet its commitments under the alliance's burden-sharing framework.
The Spanish government has also been proactive in proposing alternative approaches to European defense financing. In a recent initiative, Sánchez put forward a plan for €850 billion in annual EU joint borrowing to bolster the continent's military capabilities, a move that underscores Madrid's preference for collective European solutions over bilateral US demands.
Trump's latest broadside is part of a pattern of friction between Washington and several European capitals. At the same summit, the US president revived his controversial push to acquire Greenland, drawing sharp rebukes from Danish Prime Minister Mette Frederiksen, who reiterated that the territory is 'not for sale.'
The trade threat against Spain, if implemented, would have significant economic consequences. Spain is a major exporter of agricultural products, machinery, and chemicals to the United States, while US firms have substantial investments in the Spanish market. A full trade cutoff would disrupt supply chains and could escalate into a broader transatlantic trade dispute.
European markets have already been rattled by Trump's aggressive trade posture. The president's recent declaration of a ceasefire with Iran sent oil prices surging and European stocks tumbling, highlighting the continent's vulnerability to US policy shifts.
For now, Madrid is betting that Trump's rhetoric will not translate into immediate action. But the incident underscores the growing strain within NATO as the alliance grapples with divergent priorities and a US president who shows little patience for traditional diplomatic norms.
