President Donald Trump sharply criticized Spain during the NATO summit in Ankara, calling it a poor alliance partner and urging a complete halt to U.S. trade and travel with the country over its defense spending.
NATO Secretary General Mark Rutte acknowledged Spain had increased military spending but said outstanding issues remain.
Reuters reported that Spain's Prime Minister's Office downplayed Trump's remarks, describing bilateral trade and defense ties as mutually beneficial.
Markets reacted negatively. Spanish bonds weakened, the IBEX 35 index fell, and broader European stocks declined as investors also weighed Trump's declaration that the Iran ceasefire was effectively over.
Related Tweet:
Trump: "Spain is a wasted cause. We don't want to do any trade business with Spain anymore, by the way. I'd like to cut it off. Spain is a terrible partner in NATO. Cut off all trade with Spain, please. Including visits. We don't want anything to do. They're hopeless. Bad… pic.twitter.com/mcWRBhARjF
— Aaron Rupar (@atrupar) July 8, 2026
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