MWE Correspondent
U.S. President Donald Trump has ordered Treasury Secretary Scott Bessent to begin preparations to halt all trade with Spain, dramatically escalating tensions with one of Washington’s oldest European allies over defence spending and the conflict involving Iran.
Speaking alongside NATO Secretary General Mark Rutte ahead of the NATO summit in Ankara, Trump described Spain as a “terrible partner” within the alliance, accusing Madrid of failing to meet NATO’s new defence spending target and refusing to fully support U.S. military operations linked to the conflict with Iran.
“I don’t want anything to do with Spain,” Trump said, adding that he had instructed Treasury Secretary Scott Bessent to “cut off all trade with Spain, including visits.” The remarks marked one of the strongest public rebukes of a NATO ally since Trump returned to the White House.
The announcement came after Spain declined to commit to NATO’s newly proposed defence spending target of 5 percent of gross domestic product. Spanish Prime Minister Pedro Sánchez has argued that such a target would place excessive pressure on the country’s public finances, insisting that Spain remains committed to the alliance while pursuing a balanced defence policy.
Relations between Washington and Madrid have also been strained by disagreements over the Middle East. According to U.S. officials, Spain refused to allow its territory and airspace to be used in support of recent American military operations targeting Iran, a decision that further angered the Trump administration.
Despite Trump’s directive, trade experts caution that cutting off commerce with Spain would be far more complicated than imposing restrictions on a single country. As a member of the European Union, Spain’s trade relationship with the United States is governed largely through EU-wide agreements, meaning any sweeping embargo could face significant legal, diplomatic and economic challenges. Analysts say such action could require the White House to invoke emergency powers under the International Emergency Economic Powers Act and could face court challenges.
The proposed trade freeze has raised concerns among businesses on both sides of the Atlantic. Spain exports billions of dollars’ worth of products to the United States each year, including olive oil, wine, pharmaceuticals, machinery and industrial goods, while American companies maintain substantial investments in Spain. A prolonged disruption could affect supply chains, increase prices for consumers and deepen tensions between Washington and the European Union.
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Trump, who has long argued that NATO members should shoulder a greater share of defence costs, has repeatedly criticised European allies for what he describes as inadequate military spending. Since returning to office, he has made burden-sharing a central pillar of U.S. foreign policy, warning that allies unwilling to increase defence contributions could face political and economic consequences.
Spain, however, has defended its record, pointing to increased defence investment in recent years and reaffirming its commitment to NATO operations. Prime Minister Sánchez described his recent conversation with Trump as cordial and maintained that Spain remains a reliable ally despite policy differences.
The dispute has become one of the most significant transatlantic disagreements of Trump’s second term, highlighting widening divisions within NATO over defence spending, regional security and the future of U.S.-European relations. Whether the proposed trade restrictions are ultimately implemented remains uncertain, but the announcement has already sent a strong political message and intensified debate over the future of one of the world’s most important strategic alliances.
