‘Spain Is a Wasted Cause’: Trump Orders End to All US Trade With Madrid

8 July 2026
‘Spain Is a Wasted Cause’: Trump Orders End to All US Trade With Madrid

Assahafa.com

US President Donald Trump on Wednesday ordered an immediate halt to all trade with NATO ally Spain, calling it a “terrible partner” and a “wasted cause” during a summit that European leaders had hoped would mend growing rifts within the military alliance.

“I didn’t speak to Spain. Spain is a wasted cause. We don’t want to do any trade business with Spain anymore,” Trump told reporters ahead of a meeting with fellow NATO leaders in Ankara, the Turkish capital.

The US president then turned to Treasury Secretary Scott Bessent and directed him to act without delay. “I don’t want to do any trade with them, alright?” Bessent replied: “Yes, sir.” Trump went further: “Take it immediately. Don’t even talk to them. They’re hopeless. They’re bad people. They make so much money with us, and we’re going to see that they make a lot less.”

This marked the second time Trump instructed Bessent to cut off commerce with Spain. After a similar threat in March, trade between the two countries continued normally.

Trump’s frustration with Madrid runs along two tracks. Spain was the only NATO member to publicly reject the alliance’s new defense spending target of 5% of GDP, instead negotiating flexibility in how it would meet capability goals.

‘Business as usual’

Spanish Prime Minister Pedro Sánchez also refused to allow the US to use the jointly operated Rota Naval Base and Morón Air Base in southern Spain for offensive operations against Iran under Operation Epic Fury. Sánchez condemned the US-Israeli campaign against Iran as an “extraordinary mistake” and called for de-escalation.

“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, please, including visits,” Trump declared. “Let’s see how hostile they remain when they call up, and they say ‘please, please, we want to trade with you, sir.’”

NATO Secretary General Mark Rutte attempted to ease the tension, noting that Spain “made a huge step last year” by raising its spending to 2%, though he acknowledged “there are still issues we have to solve.”

Sánchez’s office dismissed the remarks as “business as usual,” with no intention of altering what it described as “excellent” relations with Washington. The Spanish government pointed out that Spain runs a trade deficit with the US and that, under EU customs union rules, individual member states cannot be singled out in trade policy.

That legal reality presents a significant obstacle. Since 1993, tariffs and trade agreements have been negotiated collectively by the European Commission on behalf of all 27 member states. Any measure targeting Spain alone would carry implications for the entire single market and could trigger a coordinated response from Brussels.

Under US law, Trump’s unilateral options face constraints. Section 122 of the Trade Act caps presidential tariffs at 15% for a maximum of 150 days without congressional approval.

The president could, however, impose individual sanctions through the Treasury Department or restrict technology exports to specific Spanish companies through the Commerce Department’s Entity List, though Spain currently enjoys a privileged status under US export regulations.

The two countries traded roughly $47 billion in goods in 2025. The US exported about $26 billion to Spain and imported approximately $21 billion, including pharmaceuticals, machinery, chemicals, olive oil, and auto parts.

Despite Trump’s rhetoric, major US investors remain bullish. BlackRock, the world’s largest asset manager, identified Spain as its “preferred country for equity exposure” in its mid-year report, holding €104 billion worth of Spanish equities, debt, and other assets. Net US investment in Spain, however, dropped by €1.9 billion in the first quarter of 2026.

Source: Morocco word news

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