Spain commits to NATO spending, averting US trade threat

A tense standoff between the United States and Spain over defense spending was abruptly resolved on Thursday after Spain agreed to a substantial financial commitment to NATO, defusing a threat by President Donald Trump to sever all bilateral trade. The dispute, which played out during a NATO summit in Ankara, Turkey, highlighted the ongoing friction between the U.S. and European allies over military contributions.

On Wednesday, President Trump publicly directed Treasury Secretary Scott Bessent to cut off all trade with Spain, including visits, calling the country a "terrible partner" and a "wasted cause." He accused Spain of not participating or paying sufficiently within the alliance, a reference to its resistance to NATO's goal for members to invest 5% of GDP on defense by 2035. Spain had previously negotiated a special exemption to cap its spending at 2.1%.

By Thursday, however, Trump announced a reversal. Speaking to reporters aboard Air Force One, he said Spain had been "very generous" and had honored a request for "lots of payment." He framed the resolution as a success of his pressure tactics, stating that if Spain had not complied, the U.S. would not have engaged with...