Trump orders halt to US trade with Spain amid NATO spending dispute

US President Donald Trump has ordered an immediate halt to trade with Spain.

US President Donald Trump has ordered an immediate halt to trade with Spain, sharply escalating tensions with one of America’s NATO allies over defence spending and disagreements linked to the conflict with Iran. The announcement came during the NATO summit in Ankara, where leaders had hoped to present a united front despite growing differences within the alliance.

Trump criticised Spain for refusing to support NATO’s new target of spending five percent of its gross domestic product on defence. He also remained frustrated with the Spanish government’s decision not to allow the United States to use its military bases and airspace during operations related to the Iran conflict.

Speaking during the summit, Trump described Spain as an unreliable partner and instructed Treasury Secretary Scott Bessent to stop all trade with the country. It is the second time this year that Trump has made such an order. In March, he issued a similar directive after Spain rejected the higher defence spending goal, but trade between the two countries continued without interruption.

During a meeting with NATO Secretary General Mark Rutte, Trump again criticised Spain’s position. Rutte acknowledged that Spain had increased defence spending to two percent of its economy over the past year but admitted that disagreements within the alliance remained.

According to a US official, the Treasury Department will now work with the Commerce Department and the Office of the US Trade Representative to prepare possible trade restrictions on Spanish products. Legal experts say the administration could use emergency powers to impose a partial or complete embargo if Trump declares that Spain poses a threat to US national security or foreign policy.

Spanish Prime Minister Pedro Sanchez played down the dispute and insisted that relations between the two countries remain strong. He said he had a friendly conversation with Trump during the summit, adding that their discussion focused on football and golf rather than military spending.

Sanchez defended Spain’s record within NATO, saying the country has significantly increased defence investment over the past two years and remains a dependable ally. He also announced that Spain would send additional troops to Finland as part of NATO’s Arctic Sentry mission, describing the move as further proof of Spain’s commitment to the alliance.

The Spanish government also pointed out that trade relations between Spain and the United States are largely driven by private businesses rather than political leaders. Officials stressed that European Union trade rules prevent individual member states from negotiating separate trade agreements with countries outside the bloc. Spain also maintains a trade deficit with the United States, meaning it imports more American goods than it exports.

Military cooperation between the two countries also remains important. The United States and Spain jointly operate major naval and air bases in southern Spain that support NATO operations. Spanish officials said they had received no indication that the United States plans to reduce its military presence at those facilities.

Despite Trump’s latest threat, several major American investors continue to express confidence in Spain’s economy. Investment firm BlackRock recently described Spain as its preferred market for equity investments because of its stronger economic growth compared with many other developed countries. The company currently holds more than 100 billion euros in Spanish assets.

Spain exports a wide range of products to the United States, including olive oil, vehicle parts, steel, chemicals and wine. Although some industries could be affected if trade restrictions are introduced, analysts believe Spain is less dependent on the American market than several other European economies. For now, it remains unclear whether Trump’s latest order will lead to immediate changes or follow the same course as his earlier announcement, which ultimately had little effect on trade between the two countries.