"I didn't speak to Spain. Spain is a wasted cause. We don't want to do any trade business with Spain anymore," Trump told reporters.

"By the way, I'd like you to cut it off," the president said, turning to Bessent, who replied: "Yes, sir."

Trump then added, "Take it immediately. Don't even talk to them. They're hopeless. They're bad people ... They make so much money with us, and we're going to make sure they make a lot less."

Trump told NATO Secretary General Mark Rutte that Spain "doesn't agree to anything, and you shouldn't carry them."

Rutte later tried to ease tensions by saying that Madrid "made a huge step last year" by raising its spending to 2%, although he added that "there are still issues we have to solve".

Important to note: Spanish Prime Minister Pedro Sánchez is a socialist and has been sharply critical of Trump's foreign policy, including denying US military access to Spanish bases during the US-Iran campaign.

Spain is also the world's largest olive oil exporter.

How Treasury Secretary Scott Bessent will follow through on Trump's order to halt trade with Spain remains unclear.

However, if trade restrictions materialize, US olive oil importers may have to rethink their supply chains and look more aggressively to Italy, Tunisia, Portugal, and Greece as alternatives to Spanish suppliers.