President Donald Trump dramatically escalated his pressure campaign against NATO allies on Wednesday by ordering Treasury Secretary Scott Bessent to immediately halt all trade with Spain, accusing the country of refusing to meet its defense obligations and abandoning the United States during the Iran War.
The extraordinary exchange took place during Trump’s meeting with NATO Secretary General Mark Rutte at the alliance’s summit in Ankara, Turkey, where the president has continued his years-long campaign to push European allies to shoulder a greater share of the defense burden.
Speaking in front of reporters, Trump criticized Spain for refusing to commit to NATO’s new goal of spending five percent of its gross domestic product on defense.
Turning directly to Treasury Secretary Scott Bessent, who was seated beside him, Trump issued an immediate instruction.
“We don’t have to trade with them. I don’t want to do any more trade with them,” Trump said. “Take it immediately. Don’t even talk to them. They’re hopeless, bad people.”
Bessent responded simply, “Yes, sir.”
Trump predicted Spain would eventually reverse course.
“They’ll come running back,” he said.
“A Terrible Partner”
“Spain is a terrible partner in NATO,” Trump said. “They don’t participate, they don’t pay… they’re open about it, they’re hostile.”
Trump also accused Spain of refusing to assist the United States during its recent military confrontation with Iran, describing Madrid’s lack of cooperation as the final straw.
He further claimed Spanish officials had treated NATO Secretary General Mark Rutte “terribly,” despite Rutte’s efforts to keep alliance members unified around increased defense spending.
Spain has remained one of the strongest opponents of NATO’s newly adopted five-percent defense spending target, arguing that its current commitment—roughly two percent of GDP—is sufficient.
That position has increasingly placed Madrid at odds with both Washington and several Eastern European allies that have rapidly expanded military budgets following Russia’s invasion of Ukraine.
NATO Pressure Campaign Intensifies
Trump’s remarks represent the latest—and perhaps most aggressive—step in his decade-long effort to reshape NATO.
Since first running for president in 2016, Trump has argued that many European governments have relied on American taxpayers to subsidize their defense while prioritizing expansive welfare states over military readiness.
The issue has become even more pronounced following renewed instability in the Middle East and heightened tensions with Russia.
The administration has repeatedly argued that credible deterrence requires allies to make meaningful investments rather than relying primarily on American military power.
European Officials Push Back
European leaders responded quickly to Trump’s announcement, questioning both the legality and practicality of imposing country-specific trade restrictions on a member of the European Union.
An EU spokesperson called on Washington to “honour its commitments,” while Spanish officials argued that individual member states cannot simply be isolated from broader trade arrangements because Spain participates in the European Union’s Single Market.
Spanish officials also emphasized the economic relationship between the two countries.
“The U.S. has a trade surplus with Spain,” a government spokesman said, arguing that bilateral commerce benefits both nations.
Officials added that Madrid has “no intention” of altering its relationship with the United States despite Trump’s threat.
More Than Just Trade
While Spain argues the United States exports more to Spain than it imports, the broader economic picture is more nuanced.
One of Spain’s largest imports from the United States is liquefied natural gas (LNG), purchases of which have risen dramatically over the past year. American suppliers now account for roughly one-third of Spain’s natural gas imports, making the country heavily dependent on American energy exports.
That dependence has become increasingly pronounced after Spain experienced a massive power outage earlier this year that highlighted vulnerabilities in its energy infrastructure and temporarily disrupted electricity across parts of southwestern Europe.
Any interruption in American LNG shipments could therefore create challenges extending well beyond trade statistics.
A Broader Strategy
Whether Trump’s directive ultimately results in a formal embargo, tariffs, licensing restrictions, or another trade mechanism remains unclear.
But the announcement reflects a broader pattern in the administration’s foreign policy of using America’s economic leverage alongside its military influence to pressure allies into meeting Washington’s strategic priorities.
His message to allies has remained consistent throughout both presidencies: countries that benefit from America’s security umbrella should expect to contribute proportionately—and those that refuse should not assume economic relationships will remain untouched.
For Spain, that warning is no longer rhetorical. Whether the administration follows through remains to be seen, but Wednesday’s exchange signaled that Trump’s patience with one of NATO’s most reluctant members may have finally run out.
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