Ankara, Turkey — President Donald Trump said Wednesday that he ordered Treasury Secretary Scott Bessent to cut off U.S. trade with Spain, escalating a dispute with a NATO ally over defense spending and military cooperation.
Reuters reported that Trump called Spain a “terrible partner” during the NATO summit in Ankara. The dispute centers on Spain’s refusal to meet NATO’s new 5% of GDP defense spending target and its refusal to allow U.S. use of Spanish airspace and bases for operations tied to the Iran war.
Spain says it has reached 2% of GDP in defense spending and argues that 2.1% is enough to meet its NATO capability commitments. Prime Minister Pedro Sánchez’s government has also said defense increases must be balanced with domestic spending.
The threat could be legally complicated because Spain is part of the European Union, which negotiates trade policy as a bloc. Reuters reported that Spanish officials downplayed the immediate impact, saying private companies drive much of the trade relationship.
The United States maintains Naval Station Rota and Morón Air Base in Spain, both important sites for U.S. and NATO operations. The Wall Street Journal reported that Spanish stocks fell after Trump’s comments.
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