ANKARA, Turkey — United States President Donald Trump has ordered a comprehensive halt to all trade with Spain, including the suspension of tourism, following a fierce public rebuke of Madrid during a NATO summit in Ankara. The directive, delivered during a joint press conference with NATO Secretary General Mark Rutte, marks a dramatic escalation in trade tensions and highlights deepening transatlantic fractures over defense spending and foreign policy alignment.
Addressing the press, the US President instructed Treasury Secretary Scott Bessent to immediately cut all commercial ties with Spain, describing the European nation as a “terrible partner” and a “lost cause.” Trump explicitly ordered the cessation of all trade and visits, stating he no longer wished to have any dealings with the country. The sweeping directive was fueled by Madrid’s refusal to support the United States during its military operations against Iran, as well as ongoing disputes over NATO defense spending targets. Trump accused Spain of being “open” and “hostile” in its defense posture, noting that while Madrid has agreed to increase its defense budget to 2.1 percent, it falls drastically short of his demand for a 5 percent commitment by 2035.
Despite the aggressive rhetoric, Trump offered a slightly softened assessment later in the day, suggesting that Spain was simply “going through a bad time” and predicting that the country would eventually realize the economic cost of alienating the United States. He asserted that Spain would soon come running back to resume relations, though he maintained his criticism that Madrid “behaved very badly” by failing to provide assistance during the conflict in the Middle East. This is not the first time the US administration has threatened to sever economic ties with Spain; a similar ultimatum was issued earlier this year after Madrid refused to allow the US military to utilize the Morón and Rota air bases for operations in the region.
During the press conference, NATO Secretary General Mark Rutte attempted to mediate the dispute and offered a defense of Spain’s recent commitments. Rutte highlighted that Madrid had taken a “big step” by reaching the 2 percent defense spending target agreed upon at the previous summit in The Hague. While acknowledging that further challenges remain, the NATO chief urged recognition of Spain’s progress, emphasizing that the alliance must focus on collective advancements rather than individual shortcomings.
#WorldBusinessWatch | Trump demands total cut-off with Spain
— WION (@WIONews) July 10, 2026
Sparks fly over Spain's failure to hit 5% defence spending@kanishka9996 has more pic.twitter.com/Pai2plNPST
In Madrid, the government responded to the US President’s threats with measured calm. Sources from the Prime Minister’s office, La Moncloa, stated they are receiving the statements with “tranquility and normality,” emphasizing that the bilateral relationship is highly beneficial and deeply integrated within the broader European Union framework. Spanish officials reiterated that economic and trade ties are primarily conducted between private entities rather than governments, making a blanket state-level embargo highly complex. The European Commission also swiftly rallied behind Madrid, issuing a statement affirming that the bloc will always defend the interests of its member states and advocating for a predictable, mutually beneficial relationship with Washington.
Meanwhile, the logistical implementation of the President’s order is already underway within the US government. A US official confirmed to Reuters that the Department of the Treasury is actively collaborating with the Office of the United States Trade Representative and the Department of Commerce. The interagency task force is currently compiling a comprehensive list of Spanish products that could be subjected to a formal US trade embargo in the coming days, signaling that the administration is moving rapidly to translate the President’s rhetorical threats into concrete economic policy.
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As the diplomatic fallout continues to unfold, international markets and trade regulators are bracing for the potential impact of a targeted US embargo on Spanish exports.
