The NATO summit was expected to showcase unity among allies. Instead, it took a dramatic turn after U.S. President Donald Trump ordered a halt to trade with Spain, escalating tensions over defence spending and the ongoing conflict with Iran.
U.S. President Donald Trump has ordered an immediate halt to all trade with Spain during the NATO summit in Ankara, Türkiye. Trump accused Spain of failing to meet the alliance’s new defence spending commitments and criticised the country for refusing to support U.S. military operations related to Iran. He described Spain as a “terrible partner” in NATO and instructed Treasury Secretary Scott Bessent to begin cutting off trade.
The decision caught many NATO allies by surprise. European leaders had hoped the summit would reinforce unity and demonstrate continued support for Ukraine. Instead, Trump’s announcement overshadowed much of the gathering and reopened divisions within the alliance. Spain quickly pushed back.
Prime Minister Pedro Sánchez’s government dismissed the threat and stressed that trade negotiations with the United States are handled through the European Union, not individual member states. Officials also noted that economic ties between Spain and the U.S. remain strong.
The move may also face legal hurdles. Trade experts say a U.S. president cannot simply suspend trade with an EU member without following legal procedures, which could require declaring a national emergency or invoking other statutory powers.
Markets reacted almost immediately. Spanish stocks fell after Trump’s remarks, with major banking shares among the biggest losers as investors assessed the potential impact of a prolonged trade dispute.
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The confrontation did not stop there. Trump also renewed his call for U.S. control of Greenland, drawing another sharp response from Denmark and adding to the diplomatic strain at the summit.
The dispute reflects broader disagreements inside NATO. While most members have agreed to increase defence spending, Spain remains reluctant to commit to the alliance’s proposed target of spending 5% of its GDP on defence. That difference has become one of Trump’s biggest points of criticism.
Whether the trade order takes effect remains uncertain. It has, however, shifted attention away from NATO’s core agenda and raised fresh questions about the future of transatlantic cooperation.
The summit was meant to strengthen the alliance. Instead, it ended up exposing just how fragile that unity can become when politics, trade and security collide.
