Trump orders complete trade cutoff with Spain at Ankara summit
US President Donald Trump has ordered a halt to all trade with Spain, threatening severe economic disruption to European markets over a dispute regarding defence spending and military base access.
US President Donald Trump has instructed Treasury Secretary Scott Bessent to halt all trade with Spain, escalating a bilateral dispute that has been brewing since March. Speaking alongside NATO Secretary General Mark Rutte at the alliance's summit in Ankara, Trump labelled Spain a "wasted cause" and a "terrible" partner. "Spain is a wasted cause. We don't want to do any trade business with Spain anymore," Trump said.
A complete cessation of trade between the United States and Spain would represent a severe shock to European markets and cross-border supply chains. As a major economy in the eurozone, Spain is deeply integrated into transatlantic commerce. A blanket blockade ordered through the Treasury would immediately disrupt agricultural exporters, automotive manufacturers, and pharmaceutical companies.
Investors will now have to price in the risk of similar unilateral trade suspensions targeting other European nations that fail to meet Washington's defence demands. The unpredictability of such executive orders introduces significant volatility for businesses operating across the Atlantic.
The immediate trigger for this rupture dates back to March, when the Spanish government blocked Washington from using the Rota and Morón military bases for a US bombing campaign against Iran. Trump had threatened economic reprisals at that time, and his arrival in Ankara signalled he is prepared to act.
The American president also renewed his criticism of Prime Minister Pedro Sánchez’s government for refusing to commit to raising defence spending to 5% of GDP. Washington has been aggressively pushing this 5% target on its European allies in recent months.
Sources within the Spanish government said they are responding to the attacks with relative "calm" from the Moncloa palace. Officials stated they arrived in Ankara prepared for this scenario, armed with data to counter the White House's demands.
Madrid rejects the premise that it is failing its allies. Spain points out that it has already reached the benchmark of spending 2% of GDP on defence. It currently ranks seventh among the alliance's 32 members, and notes that NATO’s own technical projections indicate a spend of 2.1% will be sufficient.
