ANKARA/MADRID--U.S. President Donald Trump on Wednesday ordered an immediate halt to all trade with NATO ally Spain, escalating tensions over defence spending and the Iran war, despite European Union rules requiring trade negotiations to be conducted as a single bloc.
During a NATO summit in Ankara, which European leaders had hoped would cap rifts within the military alliance, Trump reignited the dispute with Spain, calling it a "terrible partner", and made renewed claims on Greenland, although he later changed tack and said there had been love and "a lot of unity" at the gathering.
Spanish Prime Minister Pedro Sanchez played down the rift and said he had a "very cordial" conversation with Trump during the summit.
It was the second time Trump has instructed Treasury Secretary Scott Bessent to halt commerce with Spain over its refusal to commit to NATO's new defence spending target of 5% of GDP. However, after his first such promise in March, trade between the two countries continued normally.
"Spain doesn't agree to anything, and you shouldn't carry them," Trump told NATO Secretary General Mark Rutte, who tried to soothe the tension by saying that Spain "made a huge step last year" raising its spending to 2%, though he added that "there are still issues we have to solve."
Trump has repeatedly expressed frustration with Spain after Sanchez, a Socialist who leads a minority leftist government, refused to let the U.S. use its airspace or bases for 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: "I don't want anything to do with Spain. Cut off all trade with Spain, please, including visits, OK?"
Asked about next steps on Trump's directive, a U.S. official in Washington told Reuters that the Treasury Department will work with the Commerce Department and the U.S. Trade Representative's office to present Trump with "a menu of Spanish products that may be embargoed in the coming days."
Trade lawyers say Trump could likely invoke the International Emergency Economic Powers Act to impose a full or partial embargo on Spanish imports.
