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International Business Times UK
International Business Times UK
World
Rohit David

Trump Threatens to Cut All Trade with Spain After NATO Ally Refuses 5% Defence Spending Target

Trump orders halt to trade with Spain over NATO 5% spending (For illustration purposes only) (Credit: Antonio Garcia Prats: Pexels)

President Donald Trump has ordered US authorities to cut off all trade with Spain, the NATO ally that has refused to adopt the alliance's new target of spending 5% of GDP on defence. The announcement, made on 8 July during the NATO leaders' summit in Ankara, Turkey, represents a sharp escalation in long-running disputes over fair burden-sharing among members. Spain remains the sole country to have secured an exemption from the commitment agreed at the 2025 summit in The Hague, opting instead to limit its defence budget to roughly 2.1 per cent of GDP.

Trump made the directive to Treasury Secretary Scott Bessent for the second time amid broader frustrations with European contributions and Spain's positions on other matters such as support during tensions involving Iran.

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