Trump calls for end of all trade with Spain, calling them ‘hopeless’
US President Donald Trump ordered his Treasury Secretary to cut off all trade with Spain on Wednesday, calling the NATO ally “a wasted cause”, “a terrible partner,” “hopeless,” and “bad people” at a press conference alongside NATO Secretary General Mark Rutte in Ankara.”I don’t want to do business with them,” Trump said. “Don’t even talk to them.” “They make so much money with us, and we’re going to see that they make a lot less. I want no business with them.”Treasury Secretary Scott Bessent, seated in the room, replied: “Yes, sir.”Spain responded calmly to Trump’s aggression. A government spokesperson said Madrid was treating the remarks “calmly and as a matter of course,” noting the two countries maintained an “excellent” relationship and that the US actually runs a trade surplus with Spain. “Economic ties are built by private companies, not by governments,” the spokesperson added.The EU has also responded to the threats stating that they will ‘always’ protect member states’ interests.”We expect the US to honour its commitments under that joint statement as we have honoured ours,” EU trade spokesman Olof Gill said, referring to a trade pact signed last year between Brussels and Washington.
Why Spain and why now
Trump’s outburst was built on three key grievances. Defence spending: Spain is the only NATO member that did not commit last year to spending 5 per cent of GDP on defence by 2035, the target Trump has been pushing across the alliance. Spain spent 2.1 per cent of GDP on defence in 2025, up from 1.4 per cent in 2021, but far short of what Washington wants. Rutte tried to negotiate with Trump on this stating: “You got Spain to pay 2 per cent. They made a huge step last year.” but Trump remained unmoved.The Iran war: Spain refused to allow the US military use of its bases or airspace for American bombing campaigns against Iran, a decision Prime Minister Pedro Sánchez made explicitly and publicly. Spain had blocked the use of the Rota and Morón bases for Washington. A US official told Reuters in April that an internal Pentagon email had detailed potential retaliatory measures against NATO allies who did not support the Iran campaign. Spain was near the top of that list.PM Pedro Sánchez: Unlike most European leaders who have tried to soften their posture toward Trump, Sánchez has calculated that criticising the US president plays well domestically, and has continued to do so on numerous occasions. Spain has also been one of the EU’s sharpest critics of Israel, with Sánchez repeatedly accusing Israel of committing “genocide” in Gaza.
What is the future of the threat
This is also not the first time Trump has made this threat. In March, he said he had directed Bessent to “cut off all trade with Spain” following Sánchez’s decision on Iran bases. That order did not produce an actual trade cutoff. Wednesday’s remarks may as well follow the same pattern, a public declaration with significant diplomatic and market impact, and significant legal and practical obstacles to implementation.Spain is a member of the European Union, which holds consolidated authority over foreign trade for all 27 member states. Trade policy with the US is a matter for Brussels, not Madrid, meaning Trump cannot technically embargo Spain without also embargoing the EU.Trump has suggested US presidents have the authority to impose a full embargo on goods from any country. Legal and trade experts have disputed how far that power extends against an EU member state without triggering a broader transatlantic confrontation.Spain is not the only target. At the same Ankara summit, Trump threatened to withdraw all US soldiers from Europe if NATO members did not increase defence spending, and maintained his claim that Greenland, part of the Kingdom of Denmark, should be controlled by the United States.Trump has consistently used trade threats as a diplomatic lever against allies who do not fall in line on military spending or foreign policy. Whether the lever produces compliance or simply friction has varied. In Spain’s case, Sánchez’s domestic popularity has, if anything, risen in proportion to his willingness to push back. Go to Source
