Trump Orders US Treasury to Cut Trade Ties with Spain Over Defense Spending Dispute

US President Donald Trump announced during a press conference in Ankara alongside NATO Secretary General Jens Stoltenberg that he has instructed Treasury Secretary Scott Bessant to sever all trade relations with Spain. Trump labeled Spain a "bad partner" and criticized the country for refusing to increase its defense spending to 5% of GDP, a demand he made. "Spain agrees to nothing, and you shouldn’t carry them on your back," Trump said, addressing Stoltenberg. He then told Bessant, "Do it immediately, don’t even talk to them, they are hopeless, they are bad people." Trump accused Spain of profiting from trade with the US while the US suffers losses and insisted he wants no business dealings with Spain.

This is not the first time Trump has threatened to cut trade ties with Spain. In March, shortly after the outbreak of the war in Ukraine, Trump made a similar threat when the Spanish government refused to allow the US military to use joint bases on its soil for strikes against Iran. Spanish Prime Minister Pedro Sánchez explicitly condemned US and Israeli attacks on Iran, stating they create a "more hostile and uncertain world order." Trump responded by calling Spain "really terrible" and again threatened to sever trade relations.

Despite these threats, implementing such a trade cutoff would be difficult. US-Spain trade relations are governed by agreements with the European Union. As of the end of 2025, the US trade deficit with Spain stood at $4.8 billion, up from $3.4 billion at the end of 2024. The US mainly exports energy products such as liquefied natural gas, aircraft, and chemicals to Spain, while Spain exports olive oil, wine, steel products, and pharmaceuticals to the US.