U.S. President Donald Trump on Wednesday ordered an immediate halt to all trade with Spain, dramatically escalating a dispute over defence spending and Madrid's stance during the conflict with Iran.
The announcement came during the NATO summit in Ankara, where alliance leaders had sought to project unity amid growing global security challenges. Instead, Trump renewed criticism of Spain, accusing the country of failing to meet NATO's new defence spending commitments and refusing to support U.S. military operations during the Iran war.
"I don't want anything to do with Spain. Cut off all trade with Spain, please, including visits, OK?" Trump said, directing Treasury Secretary Scott Bessent to implement the measure.
At the centre of the dispute is Spain's refusal to commit to NATO's new target of spending 5% of gross domestic product on defence and security.
During a discussion with NATO Secretary General Mark Rutte, Trump singled out Spain as an outlier among alliance members.
"Spain doesn't agree to anything, and you shouldn't carry them," Trump said.
Rutte sought to defuse the situation, noting that Spain had significantly increased defence spending in recent years and had reached the alliance's previous 2% target.
However, he acknowledged that disagreements over future spending levels remained unresolved.
This is the second time Trump has threatened economic consequences against Spain over defence policy. In March, he instructed officials to halt trade with the country, but no restrictions were ultimately introduced and commercial ties continued as normal.
Following Trump's remarks, a U.S. official told Reuters that the Treasury Department would work with the Commerce Department and the Office of the U.S. Trade Representative to prepare options for sanctions or restrictions targeting Spanish products.
According to the official, Trump will be presented with a "menu" of Spanish goods that could face embargoes in the coming days.
Trade experts say the administration could potentially invoke emergency economic powers to impose a full or partial embargo on Spanish imports, though such a move would likely face legal and diplomatic scrutiny.
The proposal also raises questions because trade policy with European countries is generally handled through the European Union rather than individual member states.
The dispute extends beyond defence spending.
Trump has repeatedly expressed frustration with Spanish Prime Minister Pedro Sanchez after Spain declined to allow U.S. forces access to Spanish airspace and military bases during operations linked to the Iran conflict.
The disagreement has become one of the most significant points of tension between Washington and Madrid in recent years.
Despite Trump's comments, Sanchez sought to downplay the confrontation.
Speaking after the summit, the Spanish leader described his conversation with Trump as "very cordial" and said the two discussed subjects including the upcoming FIFA World Cup and golf.
He reiterated that Spain remains a dependable NATO ally.
Sanchez argued that Spain has substantially increased military spending and continues to contribute to alliance operations.
He announced a new deployment of Spanish troops to Finland as part of NATO's Arctic Sentry mission and insisted Spain is meeting its obligations.
"The facts are the facts," Sanchez said.
He also highlighted Spain's strong economic growth, which he said provides additional room for future defence investment.
Spanish officials further noted that the country maintains close military cooperation with the United States through two major joint-use bases in southern Spain that support naval and air operations.
They said they had received no indication that Washington was considering reducing its military presence at either facility.
Despite Trump's threats, economic links between the United States and Spain remain substantial.
Spain exports products including olive oil, wine, steel, chemicals and automotive components to the U.S. market. However, analysts note that Spain is less dependent on U.S. trade than some of its European counterparts.
Spain's government also pointed out that the country runs a trade deficit with the United States and that trade policy is governed by European Union rules rather than bilateral arrangements.
Major American investors have continued to express confidence in the Spanish economy.
BlackRock recently described Spain as its preferred destination for equity investment due to economic growth that has outperformed much of the developed world. The asset management giant holds roughly €104 billion in Spanish assets and has identified the country as a key focus for investment over the coming months.
While it remains unclear whether Trump's latest threat will result in concrete trade restrictions, the dispute has exposed growing political tensions between two long-standing NATO allies at a time when the alliance is seeking to demonstrate unity on defence and security issues.
The death toll from Venezuela's twin earthquakes has risen to 3,811, according to figures released by National Assembly President Jorge Rodriguez on W...
The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuw...
This is the first of four articles in AnewZ's series examining how conservationists are working to protect and repair damage done to the Aral Sea whic...
Kazakhstan has limited vehicle entries from Russia and neighbouring countries to one per day to tackle illegal fuel smuggling. The restrictions come amid a surge in Russians crossing the border to buy gasoline, as prices at home soar due to the Ukrainian strikes on Russian oil refineries.
Militants in southwestern Pakistan have killed 42 army and police personnel in multiple attacks, the country’s military has said.
The European Union is exploring ways to support the development of transport routes connecting Armenia and Azerbaijan as part of broader efforts to promote lasting peace and regional integration in the South Caucasus, according to EU Special Representative for the South Caucasus Magdalena Grono.
A United Nations investigation has concluded that Sudan's paramilitary Rapid Support Forces (RSF) committed atrocities amounting to genocide during their siege and capture of el-Fasher in North Darfur last year, while concern is mounting that similar abuses could be unfolding around al-Obeid.
The U.S. says it has launched strikes on Iran after alleged attacks on three commercial vessels in the Strait of Hormuz. Washington described the action as a response to threats against civilian shipping and a breach of the ceasefire.
U.S. President Donald Trump said on Wednesday that the memorandum of understanding signed with Iran to end the conflict was "over", adding he did not want to engage with Tehran, calling the Iranian leadership "sick people".
NATO leaders are unveiling multi-billion-dollar arms deals in Ankara as President Donald Trump joins the summit, highlighting Europe's increased defence spending amid tensions over Russia and Iran, and following years of U.S. criticism of the alliance.
Mark Rutte, Secretary General of NATO, has described fresh U.S. strikes on Iran as "absolutely necessary," in remarks at the start of the second day of the alliance's sumit in the Turkish capital Ankara.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 8th of July, covering the latest developments you need to know.
China's technology sector is producing billion-dollar startups at its fastest pace in nearly five years, with artificial intelligence and robotics driving a new wave of investment that is reshaping the country's innovation economy.
The death toll from Venezuela's twin earthquakes has risen to 3,811, according to figures released by National Assembly President Jorge Rodriguez on Wednesday.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 9th of July, covering the latest developments you need to know.
A United Nations investigation has concluded that Sudan's paramilitary Rapid Support Forces (RSF) committed atrocities amounting to genocide during their siege and capture of el-Fasher in North Darfur last year, while concern is mounting that similar abuses could be unfolding around al-Obeid.
Russia launched another wave of missile and drone attacks across Ukraine on Wednesday, killing at least nine people and underscoring Kyiv's growing concerns over dwindling supplies of U.S.-made air-defence interceptors.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment