Spanish officials expressed confusion after the U.S. president said Madrid had “honored” his military expenditure demands.
Madrid is rejecting the notion that it has bowed to U.S. President Donald Trump’s demand to increase its military spending.
During this week’s NATO summit in Ankara, Trump took aim at Spain for refusing to agree that all of the alliance’s members devote 5 percent of gross domestic product to defense over the next decade. After lambasting Madrid for being a “terrible partner,” the U.S. president on Wednesday instructed Treasury Secretary Scott Bessent to “cut off all trade with Spain, please, including visits.”
A U.S. official on Thursday confirmed the Treasury and Commerce Departments were working on “a menu of Spanish products that may be embargoed in the coming days,” but hours later, Trump appeared to reverse course.
“I did have issues with Spain, and I still do, but Spain came back all the way today. Spain was very generous today, you know, I told them I was going to stop trading,” he told reporters aboard Air Force One. “They honored a request for lots of payment.”
Trump’s statement generated considerable confusion in Madrid.
Shortly after the president’s comments were reported on Thursday, Spanish Foreign Minister José Manuel Albares told national broadcaster RTVE that he did not know what Trump was talking about. “Only he can explain,” the diplomat said.
Spanish officials on Friday said they were opting to assume the president was alluding to the work the country has done to meet its existing military expenditure commitments. Asked if Madrid had taken on any additional expenditures, a Spanish government spokesperson told POLITICO, “No, we understand [Trump] was referring to the data showing we’ve satisfactorily complied with the 2 percent target.”
The official noted Madrid has tripled the amount it spends on defense since 2018. Those increases were also recognized by NATO Secretary-General Mark Rutte, who also referred to Spain’s collaboration in deploying troops to participate in the alliance’s missions during a post-summit press conference.
As of June 2026, Spain is the NATO member with the largest number of troops deployed on the alliance’s eastern flank and one of the few members leading strategic missions such as the maritime component of the Allied Reaction Force and the Multinational Brigade in Slovakia.
It’s hardly the first time Trump has seemingly reversed course after threatening to cut commercial ties with Spain.
After Madrid barred the U.S. from using jointly operated military bases on Spanish soil to attack Iran in February, Trump ordered Bessent to “cut off all dealings” with the country. The U.S. president made similar trade threats against Spain last October, citing Madrid’s low defense spending.
On previous occasions, the punitive measures failed to materialize. Officials in Madrid and Brussels have repeatedly pointed out that Washington cannot levy targeted sanctions against Spain because the country belongs to the European Union, which operates as a single trade bloc.
A Spanish government spokesperson sought to downplay the latest flare-up in tensions, insisting the country “maintains an excellent … economic relationship with the U.S., and it is not our intention for that to change.”