Trump Threatens Spain with Trade Ban Over NATO Spending

US President Donald Trump has threatened to halt trade with Spain after Madrid refused to commit to NATO's target of spending 5% of GDP on defense, prompting US officials to prepare a list of Spanish products that could face trade restrictions.

A US official said the Treasury Department will coordinate with the Commerce Department and the Office of the US Trade Representative to identify Spanish goods that could be included in a potential trade ban in the coming days.

During a meeting with NATO Secretary General Mark Rutte, Trump instructed Treasury Secretary Scott Bessent to suspend all forms of trade with Spain, including tourism, citing Spain's opposition to the alliance's defense spending target.

Spain swiftly rejected Trump's criticism, describing its social, cultural and economic ties with the United States as "excellent". The Spanish government also said the bilateral trade balance favors Washington, arguing that the US is the primary beneficiary of trade between the two countries.

The dispute highlights growing tensions within NATO over defense spending as member states face increasing pressure from Washington to boost military investment.