President Donald Trump instructed Treasury Secretary Scott Bessent on Wednesday to sever all commercial ties between the United States and Spain, a fellow NATO member, during the alliance’s summit in Ankara. Speaking alongside Secretary-General Mark Rutte, Trump described Spain as “a wasted cause” and “a terrible partner,” ordering an immediate trade suspension that would also encompass visits. The public directive marks the second time Trump has issued such a threat since March, when he first raised the prospect of economic retaliation over Madrid’s stance on defence spending and the Iran conflict.

According to US officials, the president’s grievances centre on two issues: Spain’s refusal to commit to NATO’s new benchmark of spending 5 percent of GDP on defence by 2035—Madrid has capped its contribution at 2.1 percent—and the Spanish government’s decision to deny American forces access to jointly operated bases and airspace for offensive operations against Iran. Spanish government sources responded by stating they were treating the remarks “calmly and as a matter of course,” noting that the United States runs a trade surplus with Spain and that economic ties are forged by private companies, not governments. Madrid also underscored that, as a member of the European Union’s customs union, it cannot be singled out for unilateral trade measures.

EU trade officials reinforced that position, with a Commission spokesman saying Brussels expects Washington to honour its commitments under a bilateral trade pact and will “always” protect member states’ interests. Legal experts in Brussels note that any attempt to embargo Spain would, in practice, require measures against the entire EU, a step that would trigger a far broader transatlantic confrontation. The previous trade-cut threat, made in March, did not result in any actual disruption to the roughly $47 billion in annual goods trade between the two countries. Analysts in London add that Spain, a major exporter of olive oil, auto parts and chemicals, is less exposed to such pressure than other European economies.

Trump’s outburst overshadowed a summit that European leaders had hoped would project unity, with allies unveiling at least $50 billion in new defence initiatives on Tuesday. Rutte sought to defuse tensions by noting that Spain had raised its military spending to 2 percent of GDP, calling it “a huge step,” but the president remained unmoved. The exchange also revived Trump’s demand for US control of Greenland, drawing a sharp rebuke from Denmark. A NATO diplomat, speaking on condition of anonymity, said the answer to the questions raised by the US president is “clear: build a more European NATO.” The summit continues with no indication that the trade directive has been formalised beyond the verbal order, and EU trade authority remains the primary legal barrier to any immediate action.