Trump vows to cut all trade with 'terrible partner' Spain

The US will cut off all trade with Spain, Donald Trump claimed on Wednesday, as tensions over defence spending continued between the two countries.

Speaking at the Nato summit at Ankara in Turkey, the US president called Madrid a "terrible partner" and said he had ordered US Treasury secretary Scott Bessent to cut trade with the country.

"Spain doesn’t agree to anything and you shouldn’t carry them," Trump told Nato general secretary Mark Rutte, who he was speaking alongside. "I don’t want to do any trade with them, alright?"

Rutte replied: "Yes sir."

Trump continued: "Take it immediately, don’t even talk to them. They’re hopeless, bad people. They made so much money with us and we’re going to see that they make a lot less."

Trump has long expressed his frustration with Madrid for not committing to Nato’s new target of spending 5% of GDP on defence by 2035, the only member of the alliance not to. The country further angered Trump by refusing to let the US use its airspace or bases during the Iran war, in common with a number of other allies.

Rutte acknowledged there were still "issues we have to solve" regarding Spain, though he noted the country spent 2.1% of GDP on defence last year, up from 1.4% in 2021.

According to Reuters, the Spanish prime minister’s office said bilateral relations between the US and Spain were beneficial to both countries in trade and defence.

The Ibex 35 was down 3% as at 1100 BST.