Trump orders trade cut with Spain at NATO summit

Donald Trump has called Spain a "terrible partner in NATO" and a "wasted cause", instructing Treasury Secretary Scott Bessent to "cut it off" from trade. The remarks, made to reporters as he met NATO Secretary General Mark Rutte ahead of the main summit session, mark the latest escalation in a sustained campaign of pressure against Madrid.

Spanish government sources said the administration in Madrid was taking the threat "calmly and normally". They stressed that the two nations maintain a "magnificent social, cultural and economic relationship" and that Spain has no intention of altering it.

For investors and businesses, the rhetorical bombshell is likely to have limited immediate practical effect. Government sources highlighted that the US actually runs a trade surplus with Spain. Furthermore, it remains unclear how Washington could unilaterally sever commercial ties with a single EU member state, especially after the Supreme Court struck down Trump's use of emergency powers for arbitrary tariffs.

The repeated clashes stem from Prime Minister Pedro Sánchez's decision to position himself as a leading global progressive voice in direct opposition to the US president. Sánchez's outspoken stances on Palestine and his refusal to allow US planes to use Spanish bases for attacks on Iran have drawn specific ire from Washington.

Trump's outbursts against Spain have become a regular feature of his presidency. In March, he threatened to sever trade after Spain refused US basing rights for attacks on Iran. In May, he declared "Spain is a horror show, Spain is terrible" while sitting next to Rutte, later floating "double tariffs" and expulsion from NATO over defence spending.

Madrid has systematically avoided retaliatory rhetoric, calculating that Trump's communication is heavy on bluster and light on actionable policy. When the US president first raised trade severance in March, Spain responded that any review must respect "the autonomy of private companies, international law and bilateral agreements between the European Union and the US".

Spain was not the only European target at the summit. Trump told reporters he was "very upset with NATO" over the alliance's response to Iran and the situation with Greenland, arguing the territory is "very important for the United States, but it's not important for Denmark". Rutte insisted the US and Denmark would stick to a deal to hold talks over increasing the American footprint on the Arctic island.