U.S. President Donald Trump on Wednesday directed an immediate suspension of all trade with NATO ally Spain, escalating strains tied to defense spending and the Iran war despite European Union rules requiring trade negotiations to be conducted as a single bloc.
During a NATO summit in Ankara, which European leaders had hoped would put a lid on rifts within the military alliance, Trump instead reignited the dispute with Spain, calling Madrid a "terrible partner."
He also irked another NATO ally Denmark by reiterating that his country should control Greenland. Denmark promised to defend every inch of its territory.
It was the second time Trump has instructed Treasury Secretary Scott Bessent to halt commerce with Spain over its refusal to commit to NATO's new defense spending target of 5% of GDP. However, after his first such promise in March, trade between the two countries continued normally.
"Spain doesn't agree to anything, and you shouldn't carry them," Trump told NATO Secretary-General Mark Rutte, who later tried to soothe the tension by saying that Spain "made a huge step last year" raising its spending to 2%, although he added that "there are still issues we have to solve."
