President Donald Trump instructed Treasury Secretary Scott Bessent on Wednesday to “cut off all trade with Spain, including visits,” during a press appearance alongside NATO Secretary-General Mark Rutte at the alliance’s summit in Ankara. The directive, which Trump framed as immediate, marks the second such threat since March and was accompanied by a declaration that the fragile ceasefire with Iran “is over.” Spanish government sources responded that they were treating the remarks “calmly and as a matter of course,” insisting that bilateral relations remain “excellent” and that the US actually runs a trade surplus with Spain.

According to US officials and summit participants, Trump’s ire focused on two Spanish positions. Madrid is the only NATO member that has not committed to the alliance’s new goal of spending 5 percent of GDP on defence by 2035, having negotiated a cap at 2.1 percent. Prime Minister Pedro Sánchez’s left-wing government also refused to permit the use of jointly operated bases at Rota and Morón, or Spanish airspace, for American offensive operations against Iran. Trump characterised Spain as a “wasted cause” and “terrible partner,” while Rutte attempted to soften the exchange by noting that Spain had “made a huge step” in raising its military spending to 2 percent of GDP.

Viewed from Brussels, the trade threat faces immediate legal and institutional obstacles. The European Commission reiterated that the EU negotiates trade policy as a single customs union and that no member state can be targeted individually. EU trade spokesman Olof Gill stated that the bloc expects Washington to honour a bilateral trade pact signed last year. Spanish officials further noted that economic ties are built by private companies, not governments, and that US exports to Spain exceeded imports by roughly $5 billion in 2025. Analysts in European capitals pointed out that Trump’s March order to suspend trade produced no actual disruption, suggesting the latest declaration may again function primarily as public diplomatic pressure.

The confrontation overshadowed a summit designed to showcase allied unity and increased defence spending, with European members unveiling at least $50 billion in new initiatives. Trump also revived his demand for US control of Greenland, calling it “very important for the United States, but not important for Denmark.” Danish Prime Minister Mette Frederiksen responded that the territory is “not for sale” and that Copenhagen is prepared to defend every part of the alliance’s territory. A NATO diplomat, speaking on condition of anonymity, said the answer to the questions raised by the US president is “to build a more European NATO,” a process they described as already underway in Ankara.

The dossier now moves into a familiar pattern. No formal trade embargo mechanism has been activated, and EU trade law precludes unilateral US action against a single member state without triggering a broader transatlantic dispute. The Spanish government has signalled it will not alter its defence spending trajectory or its policy on Iran. The next concrete step is expected to be a follow-up meeting between Trump and Ukrainian President Volodymyr Zelenskyy later on Wednesday, while the broader NATO spending debate will continue in working sessions through the summit’s conclusion.