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Trump renews call to end trade with ‘terrible partner’ Spain
President cites lack of support for Iran war
Key Takeaways:
- President Donald Trump on July 8 called for ending U.S. trade with Spain during a NATO summit appearance with Secretary General Mark Rutte in Ankara.
- Trump cited Spain’s refusal to back the Iran conflict and its lower defense spending, while Spain emphasized strong bilateral ties and a U.S. trade surplus.
- Spain and the European Commission signaled they expect existing trade agreements to continue, even as markets reacted and Trump has not detailed how such a cutoff would work.
President Donald Trump once again called for an end to trade with Spain, citing its lack of support for the war in Iran and what he described as its failure to meet NATO commitments.
“Spain is a wasted cause,” Trump said on July 8, sitting next to NATO Secretary General Mark Rutte in Ankara, where the military alliance leaders were holding their annual summit. “We don’t want to do any trade business with Spain anymore.”
“I’d like you to cut it off,” Trump said, turning to Treasury Secretary Scott Bessent, who was also in the room. “Spain is a terrible partner in NATO. They don’t participate, they don’t pay. I don’t want anything to do with Spain.”
Spain’s IBEX stock index fell 2.1% after Trump’s comments.
Minutes after Trump’s remarks, a spokesperson for the Spanish government said the country “is responding to these remarks calmly and as a matter of course.” The spokesperson stressed that the two countries have an “excellent” relationship, noting the U.S. runs a trade surplus with Spain.
.@POTUS: "Spain is a wasted cause. We don't want to do any trade business with Spain anymore by the way... Spain is a terrible partner in NATO. They don't participate, they don't pay. I don't want anything to do with Spain." pic.twitter.com/3prqux6p54 — Rapid Response 47 (@RapidResponse47) July 8, 2026
“Economic ties are built by private companies, not by governments,” the spokesperson added.
This is not the first time Trump has made threats to cut off economic links to Spain. Back in March, he said he had directed Bessent to “cut off all trade with Spain.”
That came after Spanish Prime Minister Pedro Sánchez denied access to his country’s military bases for the U.S. bombing campaign against Iran. Unlike some European leaders who have tried to placate Trump, Sánchez has found that his standing at home has benefited from criticizing Trump’s actions.
Spain also faced criticism at the 2025 NATO summit, when Sánchez was the only leader from the alliance’s 32 countries to refuse to commit to a defense spending target of 5% of GDP. Spain increased defense spending from 1.42% of GDP in 2024 to 2% in 2025 and does not plan to raise it beyond 2.1%, even as other allies push for higher military spending.
Rutte tried to both defend Spain and give Trump credit for making the country boost defense expenditures.
“Even you got Spain to pay 2%,” he said, referencing the alliance’s former spending goal. “They made a huge step last year. There are issues we have to solve, but even Spain got to the 2%.”
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Trump has not explained how he could follow through on his threats toward Spain, given it’s a member of the European Union, which oversees matters of foreign trade for the entire bloc. He has, however, suggested the U.S. president can impose a full embargo on goods from any country.
The European Commission, the EU’s executive arm, noted that the EU has a trade deal with the U.S., which the bloc recently ratified.
“We expect the U.S. to honor its commitments,” commission spokesperson Olof Gill told reporters in Brussels, calling the transatlantic economic relationship “mutually beneficial.”
