'Don't Even Talk to Them' : Why Donald Trump Is Targeting Spain at NATO Summit

US President Donald Trump launched a sharp public attack on Spain at the NATO summit in Ankara on Wednesday, calling it a "terrible partner" in the alliance and ordering Treasury Secretary Scott Bessent to cut off all trade with the country, in the latest escalation of a running dispute over defence spending.

Speaking alongside NATO Secretary General Mark Rutte at the start of the summit, Trump said he wanted no business with Spain whatsoever. "Don't even talk to them. They're hopeless, bad people," he said, adding that Spain made significant money from the United States and he intended to change that. Turning directly to Bessent and instructing him to act immediately, the Treasury Secretary replied: "Yes, sir."

Rutte attempted to soften the moment, noting that Spain had reached 2% of GDP in defence spending last year, describing it as a significant step forward, while acknowledging that issues remained to be resolved. Trump was unmoved, telling Rutte that Spain did not agree to anything and should not be carried by the alliance.

Spain is the only NATO member that did not commit last year to spending 5% of GDP on defence and security by 2035, a target agreed by nearly all other member states. According to data from the Stockholm International Peace Research Institute, Spain spent 2.1 per cent of its GDP on defence in 2025, up from 1.4 per cent in 2021, but still among the lower contributors in Europe. Madrid has also drawn Washington's ire for refusing to allow the United States to use Spanish airspace or military bases during the war with Iran earlier this year, according to Reuters.

Markets React

The remarks rattled financial markets. Spanish government bonds, which had already been weakening before the press conference, fell further, with the yield on the benchmark ten-year bond rising seven basis points to 3.5408 per cent, according to CNBC. The country's IBEX 35 equity index also slipped, trading more than one per cent lower.

The United States operates two significant military installations on Spanish soil, Naval Station Rota and Moron Air Base. Reuters reported in April, citing a US official, that an internal Pentagon document had outlined options for punishing NATO allies seen as having withheld support during the Iran conflict, including the possibility of suspending Spain from the alliance altogether. The Spanish government had not responded to requests for comment at the time of publication.