WASHINGTON: U.S. President Donald Trump announced that the United States could sever all trade ties with Spain after Madrid refused to allow American forces to use its military bases for operations connected to strikes on Iran.
Speaking alongside German Chancellor Friedrich Merz, Trump criticized Spain’s leadership and said he had directed Treasury Secretary Scott Bessent to halt economic dealings with the country.
“We’re going to cut off all trade with Spain,” Trump said. “We don’t want anything to do with Spain.”
The dispute followed Spain’s decision not to permit U.S. aircraft stationed at the Rota and Morón air bases in southern Spain to participate in missions targeting Iran. In response, the U.S. reportedly moved 15 aircraft, including refueling tankers, out of the country.
Trump also tied the disagreement to defense spending within NATO, once again urging members to allocate 5% of GDP to defense. He criticized Spain for failing to meet even the lower spending thresholds discussed among allies, arguing that Madrid was not contributing sufficiently to collective security.
The president suggested he could impose a full trade embargo under the International Emergency Economic Powers Act (IEEPA), despite a recent Supreme Court ruling limiting his ability to enact sweeping global tariffs under that law. Trump insisted the ruling reaffirmed his authority to implement embargoes.
Bessent confirmed that he would instruct the U.S. Trade Representative and the Commerce Department to examine potential economic measures against Spain.
Spain’s government responded by emphasizing the importance of international law, private-sector independence, and existing trade agreements between the United States and the European Union. Officials in Madrid said they were prepared to mitigate the effects of any potential embargo and would continue advocating for open trade.
Spain’s Prime Minister Pedro Sánchez has taken several positions that have drawn criticism from Washington, including limiting certain military cooperation and blocking ships carrying weapons to Israel from docking in Spanish ports.
Despite Trump’s threats, Spain may be less economically exposed than some European partners. The United States recorded a $4.8 billion trade surplus with Spain in 2025, according to U.S. data, exporting $26.1 billion in goods while importing $21.3 billion.
Germany’s Merz noted that European leaders are pressuring Spain internally to increase defense spending to between 3% and 3.5% of GDP, in line with NATO commitments.
“We are trying to convince Spain that this is part of our common security,” Merz said.
Spain remains the world’s largest olive oil exporter and also ships automotive components, steel, and chemicals to the U.S., sectors that could face disruption if trade tensions escalate further.
