Trump Orders Halt to All US Trade With Spain Over NATO Spending Dispute
Trump Orders Trade Halt With Spain at NATO Summit
US President Donald Trump ordered a halt to all trade with Spain during a NATO summit in Ankara, citing Spain's refusal to meet a new 5% GDP defense spending target and its decision not to allow US use of its airspace or bases for operations related to Iran. Trump called Spain a "terrible partner" in NATO and instructed Treasury Secretary Scott Bessent to cut off all trade, including visits. [4] The Treasury will prepare a menu of Spanish products for potential embargo under the International Emergency Economic Powers Act. [1] Trump told NATO Secretary General Mark Rutte that Spain does not agree to anything and should not be carried by the alliance. [1] Rutte noted that Spain had raised its spending to 2% the previous year but added that issues remained to be solved. [1] Trump stated he did not want to do any trade with Spain and directed Bessent to cut off all commerce, including visits. [4]
Spanish Response and Defense Record
Spanish Prime Minister Pedro Sanchez described his conversation with Trump as "very cordial," discussed topics like the soccer World Cup and golf rather than military spending, and announced a new deployment of Spanish troops to Finland for NATO's Arctic Sentry mission. [1] Sanchez reiterated that Spain was a reliable NATO ally and noted that Spain was among the fastest-growing military spenders in NATO over the past two years. [1] He added that Spain's strong economic growth was giving it extra fiscal headroom to meet its defence commitments. [1] Sanchez's office noted that Spain had a trade deficit with the US and that economic ties were forged by private companies rather than governments. [1] EU customs and trade rules prevented singling out member states, according to Sanchez's office. [1] Washington and Madrid jointly operate two key military bases in southern Spain for naval and air operations, and Spanish officials said they were unaware of any moves to reduce US forces or assets at the bases. [1]
Trump's Gaffe on Japan and Iran Remarks
Trump made a gaffe referring to "the Islamic Republic of Japan" firing missiles at a US ship, apparently confusing Japan with Iran, during a meeting with Ukrainian President Volodymyr Zelensky. [2] Trump said "We had 111 missiles shot by the Islamic Republic of Japan" at the aircraft carrier Abraham Lincoln over a period of one hour, and they were intercepted. [2] He also declared the fragile ceasefire with Iran to be over, stating "To me, I think it's over. I don't want to deal with them." [4] Trump described Iran as "scum" and "sick people" led by sick people. [4] The US navy has stationed 19 ships around the waters of Iran, including two aircraft carriers. [2]
Shift to Unity Claims and Ukraine Support
Trump later said there had been "a lot of love" and "a lot of unity" at the summit, spoke warmly of Zelensky, offered Ukraine a license to produce Patriot missiles, and revived claims that the US should control Greenland. [4] He spoke more warmly of Zelensky in contrast to a previous tongue-lashing at a White House meeting. [4] In a potential boost to Ukraine, Trump said he would give Kyiv a license to make Patriot missiles at a time when Russia has stepped up its air war on cities. [4] A source familiar with the NATO talks said Trump had not repeated his criticisms behind closed doors and instead wanted to keep the US in NATO. [4] On paper at least, the summit ended with a message of solidarity, with NATO allies including Trump affirming their "ironclad commitment" to collective defense under the alliance's Article 5 pact in a summit declaration. [4] NATO members also pledged $80 billion in military assistance to Ukraine for 2026. [4]
Greenland Claims and Alliance Reactions
Trump demanded that his country control Greenland, a semi-autonomous territory of Denmark, reviving an issue that has put severe strain on the alliance. [4] He said Greenland is very important for the United States but not important for Denmark, and recalled that when Denmark was overrun by the Nazis, they asked the US to take care of Greenland. [4] Danish Prime Minister Mette Frederiksen reiterated that Greenland was not up for grabs. [4] France's Macron said he did not believe the US would try to seize Greenland and noted that in the alliance there are rules of solidarity to ensure that members do not attack one another. [4] NATO Secretary General Mark Rutte said the alliance was more together than ever. [4] Turkish President Recep Tayyip Erdogan said Ankara was ready to assume greater responsibility for burden-sharing within NATO. [4]
Investment Outlook and Trade Context
Despite the threats, major US investor BlackRock named Spain its "preferred country for equity exposure" due to strong economic growth, though overall net US investment in Spain fell in the first quarter. [1] BlackRock holds €104 billion worth of Spanish equities, debt and other assets, and Spain is the US-based firm's main bet at a global level for the next six months. [1] Net overall US investment in Spain fell by €1.9 billion in the first quarter, according to Spain's Economy Ministry. [1] Spain is the world's largest olive oil exporter and sells auto parts, steel, chemicals and wine to the United States. [1] Spain's wine exports fell by 4.3% in value and 2.6% in volume in 2025. [1] Trade lawyers say Trump could likely invoke the International Emergency Economic Powers Act to impose a full or partial embargo on Spanish imports. [1] Punishing Spain individually would be possible but challenging, as Trump would need to declare a national emergency and provide evidence that Spain constituted a threat to national security, foreign policy or the economy. [1]
What to watch next: NATO allies including Trump affirmed their ironclad commitment to collective defense, and members pledged $80 billion in military assistance to Ukraine for 2026 while Rutte noted that sometimes allies disagree but then come together and reunite.
