US President Donald Trump on Wednesday, 8 July threatened to sever trade ties with Spain, accusing the NATO ally of chronic under-contribution to the military alliance and warning Madrid of economic consequences if it did not change course. The remarks came in Ankara alongside NATO Secretary General Mark Rutte, ahead of a meeting with alliance leaders.

What Trump Said

Trump singled out Spain in unusually blunt terms, calling it a “wasted cause” and directing aides to end commercial ties. “Spain is a wasted cause. We don’t wanna do any trade business with Spain anymore,” he said. He went further in remarks to aides: “I’d like you to cut it out. 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 also renewed his broader criticism of European defence spending, claiming the United States had spent “over a trillion dollars over the last short period… in order to protect these countries from Russia,” adding that Washington had “been treated unfairly.” He alleged that several major European allies — including the United Kingdom, Germany, and France — had been reluctant to support the US during recent military operations against Iran. “I spoke with the UK… I spoke to Germany… spoke to France, they didn’t wanna help. Nobody wanted to help,” he said, though he noted that “some of the very small countries wanted to help because they’re the most vulnerable.”

Rutte Pushes Back, Cites Progress

Secretary General Rutte sought to temper Trump’s criticism, pointing to a significant increase in allied defence spending in recent years. “Even Spain… got to the 2 per cent. They spent, they made a huge step in last year,” Rutte said, referring to NATO’s benchmark defence-spending target of 2% of GDP.

Rutte credited Trump directly for the shift, noting that Canada and European NATO nations had collectively spent $215 billion more compared to 2024, and that allied investments in the US defence industrial base were supporting “almost 200,000 jobs” in the United States. He said total allied commitments amounted to “more than $1.2 trillion,” telling Trump: “You made this happen… It’s your win.”

Trump’s Broader Grievance With NATO

Trump argued that the burden-sharing problem predated his current term. “It should have happened years ago. Obama didn’t do it and Biden didn’t do it, and frankly, Bush didn’t do it either,” he said. He also warned Spain that its resistance would have a cost: “Let’s see how hostile they remain when they call up and they say, ‘Please, please, we wanna trade with you, sir.’ They make so much money with us and we’re gonna see that they make a lot less.”

Spain’s NATO Record and What Comes Next

Spain has historically been among the NATO members spending below the alliance’s defence benchmark as a share of GDP. However, Madrid has pledged to increase military investment amid growing security concerns following Russia’s invasion of Ukraine. Rutte’s remarks suggest Spain did reach the 2% threshold in the most recent cycle, though Trump appeared unmoved by that acknowledgement. Whether Washington follows through on any formal trade restriction remains to be seen, as such action would require legislative and regulatory steps beyond a presidential directive.