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Trump says he ordered cutting off all trade with Spain - Finance news and analysis from Global Banking & Finance Review
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Trump says he ordered cutting off all trade with Spain

Published by Global Banking & Finance Review

Posted on July 8, 2026

2 min read

· Last updated: July 8, 2026

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Trump says at NATO summit he has ordered cutoff of US trade with Spain

US-Spain Relations and NATO Tensions

Trump's Announcement at NATO Summit

ANKARA, July 8 (Reuters) - U.S. President Donald Trump said on Wednesday at a NATO summit he had ordered his Treasury Secretary Scott Bessent to cut off all trade with Spain, calling Madrid a "terrible partner" in the alliance.

Trump, speaking alongside NATO Secretary General Mark Rutte at the start of the summit in Ankara, said he wanted no business with Spain.

Background: Spain's Role in NATO

Trump has repeatedly expressed frustration with Spain, which has not agreed to NATO's new defence spending target of 5% of GDP and whose Socialist leadership refused to let the U.S. use its airspace or bases on its territory for the Iran war.

"Spain doesn't agree to anything, and you shouldn't carry them," Trump told Rutte.

Directives to Treasury Secretary

"I don't want to do any trade with them, alright?" he said, turning to Bessent, who replied: "Yes, sir."

"Take it immediately, Don't even talk to them. They're hopeless. They're bad people," he added. "They make so much money with us, and we're going to see that they make a lot less. I want no business with them." 

US Military Presence in Spain

The United States has two important military bases in Spain: Naval Station Rota and Moron Air Base.

Pentagon Options for NATO Allies

An internal Pentagon email outlined options for the United States to punish NATO allies it believes failed to support U.S. operations in the war with Iran, including suspending Spain from the alliance, a U.S. official told Reuters in April.

Reporting and Editorial Credits

(Reporting by Humeyra Pamuk and Gram Slattery; Writing by Tuvan Gumrukcu and Sabine Siebold; Editing by Andrew Gray)

Key Takeaways

  • Trump accused Spain of being the only NATO country refusing to raise defense spending to 5% and called it a “terrible partner,” directing Treasury to halt trade with Madrid (reutersconnect.com).
  • The dispute centers on Spain denying U.S. access to its military bases and lagging on defense commitments, prompting threats of broader trade retaliation despite EU-level trade frameworks (mundoamerica.com).
  • The feasibility of severing trade with Spain is complicated by their EU membership, limiting direct bilateral action—U.S. trade with Spain largely occurs through broader EU agreements (investing.com)

References

Frequently Asked Questions

What trade action did President Trump announce regarding Spain?
President Trump said he ordered his Treasury Secretary to cut off all trade with Spain.
Why did Trump order to end trade with Spain?
Trump called Madrid a 'terrible partner' in NATO as the reason for his decision.
Who did President Trump instruct to enforce the trade cutoff?
He instructed Treasury Secretary Scott Bessent to implement the trade cutoff.
Where was Trump when he announced the trade cutoff with Spain?
Trump announced the order in Ankara, ahead of a NATO summit.

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