Trump threatens to halt trade and official visits with Spain during Ankara talks

President Donald Trump used a NATO summit in Ankara on July 8 to threaten an immediate halt to U.S. trade with Spain and to stop “visits” with the country, escalating a dispute over Madrid’s defence spending and its stance during the Iran war. Trump made the remarks in front of NATO Secretary-General Mark Rutte and Treasury Secretary Scott Bessent, singling out Spain as “a terrible partner” and a “wasted cause.” Reuters reported that Bessent, the Commerce Department and the Office of the U.S. Trade Representative were asked to prepare options for possible restrictions. Spain’s Prime Minister Pedro Sánchez later said he had a “very cordial” conversation with Trump and described Spain as a reliable NATO ally. ### What exactly did Trump say in Ankara? Trump said at the summit that he did not want the United States doing business with Spain and asked Bessent to “cut off all trade with Spain, please, including visits,” according to Reuters and other summit coverage. The remarks came during a public exchange with Rutte, who responded that Spain had made “a huge step” by raising defence spending to 2% of gross domestic product, while adding that “there are still issues we have to solve.” (usnews.com) Reuters said this was the second time Trump had instructed Bessent to halt commerce with Spain over its refusal to commit to NATO’s new 5% of GDP defence spending target. The same Reuters report said trade continued normally after a similar threat in March. ### Why is Spain the target in this dispute? (usnews.com) Spain has been a recurring target for Trump because Sánchez has resisted the new NATO spending benchmark and, according to Reuters, refused to let the United States use Spanish airspace or bases for the Iran war. Trump told Rutte that Spain “doesn’t agree to anything,” linking the trade threat directly to alliance burden-sharing and wartime cooperation. (usnews.com) Sánchez said after the summit that he and Trump discussed the soccer World Cup and golf, but not military spending. He also announced a fresh Spanish troop deployment to Finland for NATO’s Arctic Sentry mission and said, “The facts are the facts.” ### Can Washington actually cut Spain off without hitting the European Union? (usnews.com) The European Union, not Spain alone, holds authority over common trade policy, which means a broad U.S. move aimed at Spain would run into the bloc’s legal structure and would risk widening the dispute to Brussels, according to the New York Times and Euronews. Both outlets said a country-specific cutoff would be difficult to carry out cleanly because Spain trades with the United States as part of the EU’s single market framework. (usnews.com) Reuters reported that any near-term action may be narrower than Trump’s rhetoric suggested. A U.S. official told Reuters that agencies were preparing “a menu of Spanish products” that could be embargoed, indicating that a partial restriction is under consideration rather than an immediate across-the-board ban. (nytimes.com) ### What legal tools does Trump have? The International Emergency Economic Powers Act, or IEEPA, remains one option for Trump to impose a full or partial embargo, Reuters reported in its explainer. The law requires a president to declare a national emergency tied to an unusual or extraordinary threat to U.S. national security, foreign policy or the economy. (usnews.com) Reuters said trade lawyers differed on how durable such a move would be. Peter Shane, a New York University law professor, said it was “hard to see” how Spain’s defence spending gap would qualify as that kind of emergency, while Mayur Patel, a former Senate Finance Committee Republican trade counsel now at Hogan Lovells, said IEEPA would allow Trump to impose an embargo even if it were later challenged in court. (usnews.com) ### How much trade is at stake if Trump follows through? U.S. Census Bureau data cited by Reuters showed total two-way goods trade with Spain reached $47.9 billion in 2025. Reuters added that when services including travel are included, total trade rose to $74.5 billion, according to Commerce Department Bureau of Economic Analysis data, making Spain the 23rd-largest overall U.S. trading partner. (usnews.com) The same Reuters explainer said the United States exported $26.6 billion in goods to Spain in 2025 and imported $21.35 billion, leaving the United States with a $5.25 billion goods trade surplus. In the coming days, Reuters said, Treasury, Commerce and the U.S. Trade Representative are expected to present Trump with options for possible restrictions on Spanish products. (usnews.com)