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Law and Government

Trump Threatens Spain Trade War at NATO Summit, Revives Greenland Claim

July 14, 2026
06:22 AM
3 min read

Key Points

Trump ordered halt to all trade with Spain over 2% defence spending versus his 5% demand.

Trump revived claim that Greenland should belong to US rather than Denmark.

NATO summit pledged €70 billion in equipment and aid for Ukraine.

Turkey emerged as key NATO power broker after hosting summit in Ankara.

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US President Donald Trump used the NATO summit in Ankara to order a complete halt to trade with Spain, calling it a ‘wasted cause’ and ‘terrible partner’. He also revived his claim that Greenland should belong to the United States rather than Denmark. Spain spent 2% of its GDP on defence in 2025, well below Trump’s demanded 5% threshold. The moves signal deepening rifts between Washington and its European allies.

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Trump’s attack on Spain over defence spending

Trump said he wanted to cut off all trade relations with Spain, citing its refusal to increase defence spending to 5% of GDP and its reluctance to support US military operations against Iran. Spain’s Prime Minister Pedro Sánchez insisted relations remained ‘very positive’ and claimed they had discussed the World Cup with ‘no tension whatsoever’. Madrid sources noted that the US had a trade surplus with Spain worth $3 billion in 2025, according to US Congress figures. Mutual trade between the countries totalled £56 billion ($75 billion) in 2025.

Greenland annexation claim divides allies

Trump called NATO’s resistance to his plan for Greenland a ‘big problem for us’, insisting the territory is essential for American security. Danish Prime Minister Mette Frederiksen was forced to state publicly once more that Greenland is not for sale and that Denmark is ready to defend every inch of its territory. The Union of European Federalists condemned Trump’s claim as threatening the territorial integrity of an EU and NATO member state.

NATO summit exposed alliance fragility

The Ankara gathering revealed deep cracks in transatlantic unity despite public pledges of solidarity. Trump used most of his public appearances to attack fellow allies rather than reaffirm collective defence. However, the summit did produce one positive outcome: NATO leaders pledged €70 billion in equipment and assistance for Ukraine, and Trump appeared to accept that Ukrainian deep strikes on Russia could force Moscow to negotiate.

Turkey emerges as NATO power broker

President Recep Tayyip Erdoğan’s personal welcome of Trump at Ankara airport, a protocol gesture rarely reserved for visiting leaders, underscored renewed momentum in US-Turkish relations. Turkey, with the second-largest standing military in NATO and a population of over 90 million, has returned to its original role as a strategically positioned ally anchoring the Black Sea and containing Russian power from the south. Observers noted that Turkey appeared to strengthen its position within the alliance during the summit.

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Final Thoughts

Trump’s threats to Spain and renewed Greenland demands expose the fragility of NATO unity at a critical moment. For UK investors and policymakers, the unpredictability signals that European defence spending and strategic autonomy will remain central to policy decisions.

FAQs

Why did Trump threaten to cut trade with Spain?

Spain refused to increase defence spending to 5% of GDP, spending only 2% in 2025, and resisted supporting US military operations against Iran.

Can the US actually take Greenland?

No. Greenland is part of Denmark, an EU and NATO member. Denmark’s PM stated Greenland is not for sale and Denmark will defend its territory.

How much trade does the US do with Spain?

Mutual trade totalled £56 billion ($75 billion) in 2025, with the US holding a $3 billion surplus according to US Congress figures.

Did Trump’s threats change Spain’s defence spending plans?

No. Spanish government sources said they were responding calmly and patiently with no intention of changing their relationship with the US.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.

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