President Donald Trump on Wednesday ordered the U.S. to cease all trade with Spain, citing the country as a "wasted cause" and a "terrible partner in NATO." The directive, issued during a NATO summit in Ankara, Turkey, follows long-standing tensions over Spain's defense spending and refusal to allow U.S. military operations against Iran from its bases.
Immediate Action & Core Facts
Trump instructed Treasury Secretary Scott Bessent to "cut off all trade with Spain, including visits," during a press conference alongside NATO Secretary-General Mark Rutte. The move would impact billions in bilateral trade, with the U.S. exporting $2.2 billion and importing $1.8 billion in goods to and from Spain in May 2026, according to U.S. Census Bureau data.
Deeper Dive & Context
Defense Spending Dispute
Trump's frustration stems from Spain's failure to meet NATO's 5% GDP defense spending target by 2035, a commitment other allies have made. Spain's spending rose from 1.4% in 2021 to 2.1% in 2025, still below Trump's demands. NATO Secretary-General Rutte defended Spain's progress, noting its recent increase to 2%.
Military Access Denied
Spain refused U.S. requests to use its bases in Morón and Rota for strikes against Iran, citing adherence to the U.N. Charter. Trump has previously threatened trade sanctions over this issue, including in March 2026.
Economic Impact
The U.S. has run a trade surplus with Spain since 2022, exporting more goods than it imports. Key U.S. exports include crude petroleum, petroleum gas, and vaccines. Spain is the 24th largest importer of American goods.
International Reactions
Spain's government dismissed Trump's remarks as routine, emphasizing strong bilateral ties. The EU reaffirmed its commitment to protecting member states' interests, citing a 2025 trade pact with the U.S.
Trump's Rhetoric
Trump characterized Spain as "hopeless" and "bad people," predicting the country would "come running back" for trade. He also accused Spain of treating NATO Secretary-General Rutte "terribly."
Historical Context
The U.S. has historically run a trade deficit with Spain, buying more goods than it sold from 2012 to 2021. Trump's demands align with his broader push for NATO allies to increase defense spending and support U.S. military operations.