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Trump orders halt to US trade with Spain over NATO spending, Iran


Wed 08 Jul 2026 | 04:17 PM
U.S. President Donald Trump
U.S. President Donald Trump
Basant Ahmed

U.S. President Donald Trump on Wednesday ordered an immediate halt to all trade with NATO ally Spain, escalating tensions over ‌defence spending and the Iran war, despite European Union rules requiring trade negotiations to be conducted as a single bloc, Reuters reported.

During a NATO summit in Ankara, which European leaders had hoped would cap rifts within the military alliance, Trump instead reignited the dispute with Spain, calling it a "terrible partner". He also irked another NATO ally Denmark by reiterating that his country should control Greenland. Denmark promised to defend every inch of ​its territory.

This marked the second time Trump has instructed Treasury Secretary Scott Bessent to halt commerce with Spain over its refusal to commit to NATO's new defence spending target of 5% of GDP. However, after his first such promise in March, trade between the two countries continued normally.

"Spain doesn't agree ⁠to anything, and you shouldn't carry them," Trump told NATO Secretary General Mark Rutte, who later tried to soothe the tension by saying that Spain "made a huge step last year" raising its spending to 2%, though he added that "there are still issues we have to solve".

Trump has also repeatedly expressed frustration with Spain after Prime Minister Pedro Sanchez, a Socialist who leads a minority leftist government, refused to let the U.S. use its airspace or bases for the Iran war.