Trump Orders Halt to All Trade with Spain Over NATO Spending Dispute

During the NATO summit in Ankara, Turkey, U.S. President Donald Trump instructed Treasury Secretary Steven Mnuchin to stop all trade with Spain. This directive came in response to Spain's refusal to meet the agreed financial burden of investing 5% of its GDP in defense, a commitment made by NATO members to share military costs more equitably. Trump labeled Spain a "terrible partner" and declared he did not want to conduct any business with the country.

Spain's Prime Minister Pedro Sánchez, a vocal critic of Israel, has rejected the 5% defense spending target, which includes 3.5% on military forces and 1.5% on infrastructure to facilitate troop and equipment movement. Spain also angered the U.S. by denying American forces access to Spanish bases and airspace for operations against Iran. The U.S. maintains two key military bases in Spain: Naval Base Rota and Morón Air Base.

Trump's comments came amid heightened tensions at the NATO summit, where he also criticized Iran following recent attacks on commercial vessels and announced the end of a ceasefire with Tehran. Meanwhile, NATO Secretary-General Jens Stoltenberg and other officials are concerned about the low defense spending of several members, including Slovenia, Belgium, and the Czech Republic, which have yet to meet even the previous 2% GDP target.

Spain responded to Trump's trade ban by affirming that bilateral relations with the U.S. remain strong and that business will continue as usual. The dispute highlights ongoing U.S. pressure on European NATO members to increase defense investments and take greater responsibility for their security, while the U.S. continues to provide nuclear deterrence.

Separately, Danish Prime Minister Mette Frederiksen firmly rejected Trump's suggestion that Greenland, an autonomous Danish territory, should be sold to the U.S., emphasizing Denmark's commitment to defending all NATO territory. Amid these tensions, NATO is reportedly considering postponing its 2027 summit in Albania, a country with low defense spending, to avoid further friction with the Trump administration.