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Reading: Trump Threatens Spain Trade Cut, Sánchez Calls It ‘Business as Usual’
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The President of the Government of Spain Pedro Sánchez/La Moncloa
Europe & UK

Trump Threatens Spain Trade Cut, Sánchez Calls It ‘Business as Usual’

Last updated: July 8, 2026 13:36
Maria Lindqvist
Published: July 8, 2026
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The President of the Government of Spain Pedro Sánchez/La Moncloa
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U.S. President Donald Trump threw a NATO leaders’ summit in Ankara into disarray on Wednesday by demanding that the United States cut trade ties with Spain and renewing claims over Greenland, escalating tensions with two NATO allies.

Speaking alongside NATO Secretary General Mark Rutte, Trump called Spain a “terrible partner” in the alliance and said he had ordered Treasury Secretary Scott Bessent to halt trade with Madrid.

“Spain is a wasted cause. We don’t want to do any trade business with Spain anymore,” Trump said. “By the way, I’d like to cut it off. Spain is a terrible partner in NATO. They don’t participate, they don’t pay. I don’t want anything to do with Spain. Cut off all trade with Spain, including visits.”

Washington and Madrid have been at odds over Spain’s rejection of Trump’s demand that European countries sharply increase military spending and pay for their own defence. Spain’s Socialist-led government has also refused to allow the United States to use its airspace or bases on Spanish territory for the Iran war.

The office of Prime Minister Pedro Sánchez said it was treating Trump’s remarks as business as usual, adding that bilateral relations benefited both countries.

Trump’s threat against Spain also raised major questions because trade policy is an exclusive European Union competence. Since the creation of the single market in 1993, tariffs, trade agreements and related measures have been handled through the European Commission, not individual EU member states.

Any measure targeting Spain alone could affect the wider single market and trigger a coordinated response from Brussels. The interconnected nature of EU trade would also create practical and legal difficulties for any unilateral U.S. move aimed only at Spanish goods or services.

Trump’s comments overshadowed a summit that European leaders had hoped would project unity, support for Ukraine and progress on defence spending. At least $50 billion in defence initiatives had been unveiled on Tuesday as part of pre-summit messaging that European NATO members were stepping up their military commitments.

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TAGGED:Ankara summitDonald TrumpEuropean UnionGreenlandIran ceasefireNATOPedro SánchezSpainU.S. trade
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