US President Donald Trump said on Wednesday that he had ordered an immediate halt to all trade with Spain, intensifying a transatlantic row that has been building over defence spending and the Iran war.

Speaking at the NATO summit in Ankara, Trump told Treasury Secretary Scott Bessent, “I don’t want to do business with them,” before adding that Spain would be made to “make a lot less” from trade with the United States.

The comments came as Trump also revived pressure on another ally, Denmark, by again saying the US should control Greenland.

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Trump doubles down on Spain

This was the second time Trump had instructed Bessent to stop commerce with Spain over Madrid’s refusal to commit to NATO’s new defence spending target of 5% of GDP.

In March, Trump made a similar threat, but trade between the two countries continued normally. At Wednesday’s summit, NATO Secretary General Mark Rutte tried to ease the tension, saying Spain had “made a huge step last year” by raising spending to 2%, though he also said there were still “issues we have to solve.” Trump, however, did not back down.

Spain and the EU push back

Spain’s response was restrained. The office of Prime Minister Pedro Sánchez said it was treating Trump’s remarks as “business as usual” and that it intended to keep the “excellent” relations it says it has with Washington.

It also argued that Spain cannot be singled out for separate trade punishment because, as part of the European Union’s customs and trade union, trade policy is handled by Brussels rather than Madrid.

An EU trade spokesman, Olof Gill, said the bloc expected the US to honour the commitments made in last year’s joint statement between Brussels and Washington.

Why the dispute runs deeper?

The confrontation reflects two separate disputes that have repeatedly irritated Trump.

Spain has resisted his demand that NATO members spend 5% of GDP on defence by 2035. The nation spent 2.1% of GDP in 2025, up from 1.4% in 2021, but still well short of Washington’s preferred level. Spain has also refused to allow the US military to use its bases or airspace for bombing campaigns against Iran, a position Sánchez made publicly.

The US and Spain jointly operate two key military bases in southern Spain, while Spain remains a major exporter to the American market through goods such as olive oil, auto parts, steel and chemicals.

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FAQs

Q1: Why did Donald Trump say he was cutting off trade with Spain?

Ans: Trump said the move was linked to Spain’s refusal to meet NATO’s proposed 5% defence spending target and its stance on US military action involving Iran.

Q2: Can the US impose trade restrictions on Spain alone?

Ans: Spain says EU trade policy is managed by the European Union, meaning individual member states cannot be separately targeted under EU trade rules.