President Donald Trump threatened Wednesday, July 8, 2026, to cut off U.S. trade with Spain after criticizing the NATO ally over defense spending.
Speaking during the NATO summit, Trump called Spain a “wasted cause” and said he did not want the United States to do more trade business with the country.
The remarks appeared to be a sharp escalation of Trump’s long-running complaint that some NATO allies rely too heavily on U.S. military power.
The dispute comes as NATO members face pressure to meet a higher defense spending target.
NATO Secretary-General Mark Rutte has urged allies to present credible plans to reach a target of 5 percent of gross domestic product.
The target includes 3.5 percent for core defense spending and 1.5 percent for defense-related areas such as infrastructure, ports, roads and cyber readiness.
Spain has resisted committing to the full 5 percent target, arguing it can meet NATO capability goals with lower spending.
Trump said Spain benefits from NATO while failing to pay enough for defense.
He also predicted Spain would eventually seek to restore trade if Washington moved forward with restrictions.
It was not immediately clear whether Trump was announcing a formal policy or expressing frustration at the summit.
Any effort to restrict trade with Spain could face legal, economic and diplomatic hurdles.
Spain is a member of the European Union, which manages trade policy for its member states.
That means a U.S. move aimed only at Spain could quickly become a broader issue between Washington and Brussels.
The United States and Spain traded nearly 48 billion dollars in goods in 2025.
U.S. Census Bureau data show the United States exported about 26.6 billion dollars in goods to Spain and imported about 21.3 billion dollars from Spain that year.
The trade threat also follows months of tension between Washington and Madrid over foreign policy.
Trump’s comments now put one of America’s European allies at the center of a new fight over NATO spending, trade policy and presidential pressure.