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Trump Threatens Trade Cut with Spain, Revives Greenland Claim; Denmark Responds

Published on: 08 Jul 2026, 01:17 PM
Trump Threatens Trade Cut with Spain, Revives Greenland Claim; Denmark Responds

US President Donald Trump threatened to cut trade ties with Spain on Wednesday, accusing Madrid of insufficient contributions to NATO. Speaking alongside NATO Secretary General Mark Rutte in Ankara, Trump said he had instructed Treasury Secretary Scott Bessent to consider ending trade with Spain, according to Reuters.

“Spain is a wasted cause. We don’t want to do any trade business with Spain anymore,” Trump said. “Spain is a terrible partner in NATO. They don’t participate, they don’t pay. I don’t want anything to do with Spain. Cut off all trade with Spain, including visits,” he added.

Under NATO guidelines, member states are expected to spend at least 2% of their GDP on defence. Spain’s defence spending in 2024 was estimated at 1.3% of GDP, below the target, according to NATO data. The US, by contrast, spends about 3.4% of GDP on defence.

Trump also declared that talks with Iran are effectively over, without providing details. Additionally, he renewed his demand that the United States should take control of Greenland, an autonomous territory of Denmark. “We need Greenland for national security purposes. It’s a matter of freedom,” Trump said.

Denmark’s government responded firmly. Foreign Minister Lars Løkke Rasmussen stated, “Greenland is not for sale. It is an integral part of the Kingdom of Denmark. We respect the wishes of the Greenlandic people.” Rasmussen added that Denmark remains committed to NATO and expects the US to respect allies' sovereignty.

Greenland’s Prime Minister Múte B. Egede also rejected Trump’s proposal, saying, “We are not for sale. Greenlands future will be decided by its people.” The territory has significant strategic importance due to its location and natural resources.

Trump’s remarks come ahead of a NATO summit where defence spending and global security issues are expected to be discussed. Analysts note that such public threats may strain diplomatic relations among allies. The US has historically pressed European allies to increase defence budgets, but the tone of Trump’s comments marks an escalation.

There has been no immediate response from Spain’s government to Trump’s trade threat. However, experts caution that a trade cut would have significant economic implications for both countries, as Spain is a key trading partner for the US in the European Union.

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