President Donald Trump escalated his long-running feud with Spain on Wednesday, publicly directing Treasury Secretary Scott Bessent to halt trade with the European nation and blasting Madrid as a NATO ally that refuses to pull its weight.
Speaking alongside NATO Secretary General Mark Rutte at the alliance summit in Ankara, Turkey, Trump singled out Spain as the primary holdout against NATO’s new defense spending framework and accused the country’s socialist government of benefiting from American protection while contributing less than other alliance members.
“Spain doesn’t agree to anything, and you shouldn’t carry them,” Trump said.
Then came the line that immediately grabbed headlines across Europe. “I don’t want to do any trade with them, alright?” Trump said while turning toward Bessent.
According to Reuters, Bessent responded, “Yes, sir.” Trump then doubled down.
“Take it immediately. Don’t even talk to them. They’re hopeless. They’re bad people,” the president said. “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.”
The dispute has been building for months.
Spain’s socialist government, led by Prime Minister Pedro Sánchez, has repeatedly resisted NATO’s push for members to spend 5% of GDP on defense. Madrid has argued that its current spending levels are sufficient and has sought exemptions from alliance targets that other members have agreed to pursue. Trump has publicly criticized that position for more than a year, arguing that American taxpayers have carried an unfair share of NATO’s defense burden for decades.
Tensions exploded further during the Iran conflict earlier this year.
Spain refused U.S. requests to use jointly operated military facilities on Spanish territory for offensive operations connected to the Iran war. The Sánchez government also restricted American military access to Spanish airspace during portions of the conflict, creating significant friction between Washington and Madrid.
The latest confrontation comes as Trump seeks to reshape NATO around a simple principle that has defined his foreign policy approach since his first term, allies should contribute more and rely less on the United States.
The administration argues that countries unwilling to meet alliance obligations should not expect unlimited American economic or military support.
Spanish officials attempted to downplay the comments, noting that trade between the United States and Spain operates largely within broader European Union frameworks. Legal experts have also questioned whether Washington can selectively suspend trade with one EU member nation without triggering wider disputes.
Still, financial markets reacted immediately. Spanish stocks declined sharply after Trump’s remarks, with investors worried that even the threat of trade restrictions could affect exports, investment and broader economic relations.
The White House has not yet released specific details regarding what actions Treasury may take.
But, the president appears determined to make Spain the test case for a new era in NATO, one where membership is expected to come with measurable obligations rather than symbolic commitments.
