Trump threatens Spain trade cutoff in NATO spending clash

President Donald Trump threatened to cut off U.S. trade with Spain at the NATO summit in Ankara, escalating a dispute over Madrid’s defense spending. Trump singled out Spain as the only ally not committed to NATO’s 5% of GDP defense target by 2035 and urged an end to trade and travel ties. Spain spent 2.1% of GDP on defense in 2025, up from 1.4% in 2021, according to SIPRI data cited by CNBC. NATO Secretary-General Mark Rutte noted Spain had raised spending to 2% but said issues remained. Spain’s prime minister’s office downplayed Trump’s remarks and said bilateral trade and defense ties benefit both countries. It was unclear whether Trump was signaling a formal policy change.