'Spain came back all the way': Trump claims Madrid caved after NATO trade warning

ANKARA, TURKEY: President Donald Trump claimed that Spain capitulated and agreed to make additional payments to NATO after he publicly threatened to cut off all trade with the country during a sharp confrontation at the alliance's summit in Ankara, calling the outcome a vindication of his hardline approach toward allies he says are not pulling their weight.

Speaking to reporters aboard Air Force One as he returned to Washington, Trump said his pressure campaign had forced Spain to change its position. 

Trump claims Spain caved on NATO payments

"Spain was very generous today," Trump told reporters aboard Air Force One as he returned to Washington.

"I told them I'm going to stop trading. What did Spain do today? They honored a request for lots of payments. And if they didn't, we wouldn't even talk to them."

He added, "I did have issues, and I still do. But Spain came back all the way today."

Trump did not specify what payments he was referring to or identify the Spanish official he claimed had agreed to the new terms.

The confrontation at the NATO summit was one of the gathering's most dramatic moments. During a meeting with NATO Secretary General Mark Rutte, Trump called Spain "a wasted cause" and threatened to sever commercial ties entirely.

"We don't want to do any trade business with Spain anymore," he said at the time. The dispute between Trump and Madrid centers on two main issues. First is NATO defense spending.

Spain increased its defense spending from 1.42% of GDP in 2024 to 2% in 2025, but it has refused to commit to the alliance's new target of 5%, arguing that 2% is sufficient to meet its obligations.

The second issue is Spain's refusal to allow US forces to use its airspace or military bases for operations related to the latest conflict with Iran. Trump repeatedly criticized Spain over both issues during the summit and made clear that he has no intention of backing down.

Spain dismisses Trump's trade pressure

The Trump administration reportedly moved beyond rhetoric during the summit.

According to sources, Trump instructed Treasury Secretary Scott Bessent to halt trade with Spain, while the Treasury Department, Commerce Department, and the Office of the US Trade Representative began preparing a list of Spanish products that could face an embargo.

The Wall Street Journal separately reported that US officials had been asked to identify specific Spanish exports that could be targeted.

It marks the second time this year that Trump has threatened to suspend trade with Spain, following a similar warning in March that was never carried out.

Spain dismisses pressure campaign

Spain responded calmly to Trump's remarks, insisting that relations between the two countries remained strong.

A spokesperson for the Spanish government said Madrid viewed the comments "calmly and as a matter of course" and stressed that the United States and Spain continued to enjoy an "excellent" relationship.

The spokesperson also noted that the United States currently runs a trade surplus with Spain, undermining Trump's argument for punitive trade measures.

Prime Minister Pedro Sanchez, who has emerged as one of Trump's most outspoken European critics, also sought to downplay the confrontation.

Sanchez said he had a "very cordial" conversation with Trump during the NATO summit but insisted the discussion centered on football and golf rather than defense spending.

"The facts are the facts," Sanchez told reporters, reiterating that Spain remained a reliable NATO ally.

Trade experts noted that any US embargo on Spain would face significant legal hurdles because EU trade policy is negotiated collectively rather than by individual member states. As a result, Trump would likely need to invoke emergency executive powers to move forward.