Trump orders halt to Spain trade as Madrid dismisses threat

Spain brushed aside Donald Trump’s order to halt all U.S. trade with the country on Wednesday, treating the latest escalation as “business as usual” and pointing to European Union rules that prevent Washington from negotiating trade separately with Madrid.

Trump told Treasury Secretary Scott Bessent to act “immediately” during a NATO summit in Ankara, calling Spain a “terrible partner” as he renewed attacks over Madrid’s defense spending and refusal to support U.S. military operations in the Iran war.

“I don’t want to do any trade with them, alright?” Trump said, turning to Bessent, who replied: “Yes, sir.” Trump added: “Take it immediately. Don’t even talk to them.”

Spanish Prime Minister Pedro Sánchez’s office said it would continue treating relations with Washington as “excellent,” while noting that Spain runs a trade deficit with the United States and that commercial ties are largely conducted by private companies.

Madrid also pointed to a central obstacle to Trump’s threat: Spain is part of the EU customs and trade union, meaning individual member states cannot normally be singled out for separate trade treatment.

The confrontation is the second in four months. Trump threatened in March to cut trade with Spain after Sánchez refused to allow U.S. use of Spanish airspace and jointly operated bases for the Iran war. Trade continued normally after that threat.

The European Commission had already drawn a line around Madrid during the March confrontation, saying the bloc was “ready to act if necessary to safeguard the interests of the EU” through its common trade policy. Brussels also stressed that a threat against one member state implicated the bloc as a whole.

NATO Secretary General Mark Rutte sought to lower tensions, saying Spain had made “a huge step last year” by raising defense spending to 2%, while acknowledging that “there are still issues we have to solve.”