Donald Trump Orders Halt To U.S. Trade With Spain At NATO Summit

President Donald Trump said the U.S. would cut off trade with Spain, telling reporters in Ankara, Turkey, “Spain is a wasted cause. We don’t want to do any trade business with Spain anymore.”

“President Donald Trump has slammed Spain for not contributing enough to NATO, as the defense alliance battles mounting friction among allies”

CNBC

Trump directed his remarks to Treasury Secretary Scott Bessent, saying “I’d like you to cut it off,” as he sat next to NATO Secretary-General Mark Rutte at the NATO summit.

CNBC

The Hill reported that if the Trump administration imposed an embargo barring American businesses from doing business with Spanish counterparts, it would impact transactions with one of the country’s top 25 trading partners.

The Hill also said that in April the top U.S. exports to Spain included crude petroleum, petroleum gas, along with vaccines, blood, antisera, toxins and cultures, and that petroleum gas exports were down by 59.6 percent in April relative to a year prior.

USA Today said Trump ordered the halt to trade with Spain on July 8, citing Spain’s defense spending at about 2% of GDP and directing the request to cut off “including visits.”

Politico reported that U.S. officials were preparing a list of Spanish goods to potentially embargo, saying the Treasury Department would work with the U.S. trade representative and Commerce Department to provide Trump “a menu of Spanish products that may be embargoed in the coming days.”

Politico also quoted Trump telling reporters, “I didn’t speak to Spain. Spain is a wasted cause. We don’t want to do any trade business with Spain anymore,” before turning to Bessent and saying, “I’d like you to cut it off.”

El Economista

The Hill described the legal framework under the International Emergency Economic Powers Act, saying Trump could act if he declares a national emergency with respect to Spain.

The Hill added that the Supreme Court ruled in February that Trump’s use of the statute was unlawful, and it included Justice Brett Kavanaugh’s dissent that IEEPA authorizes “the President to impose quotas or embargoes on foreign imports.”

CNBC said NATO Secretary General Mark Rutte told Trump, “You got Spain to pay 2%. They spent, they made a huge step in last year,” while Spain’s prime minister’s office said it saw the comments as business as usual.

The Hill said the U.S. exported more than $2.2 billion worth of goods to Spain and imported more than $1.8 billion worth of goods from Spain in May, and it reported Spain was the 24th largest importer of American goods that month.

“It’s never been altogether clear why Donald Trump harbors so much animosity toward Spain, though it’s been evident for a while”

MS NOW

USA Today reported that the U.S. imported $35.3 billion in goods from Spain in 2025 and exported $39.2 billion, while Trump said “I want no business with them.”

El Economista said Spanish stocks and bonds were heavily affected after Trump demanded the United States sever its trade ties with Spain, and it reported the IBEX 35 fell 2.6% during the afternoon trading session.

El Economista also reported that the STOXX Europe 600 fell 1.6% and that Santander shares fell 4.3% and BBVA shares fell 3% as the threat escalated during the NATO summit in Ankara, Turkey.

South China Morning Post reported Spain’s Prime Minister Pedro Sanchez said there was “absolutely no tension of any kind” after he had an informal chat with Trump, adding that relations with America remained constructive.