Trump Threatens Full Trade Embargo on Spain Over Iran War Refusal
President Donald Trump has threatened to impose a complete U.S. trade embargo on Spain after the NATO ally refused to allow American military bases on its territory to be used for missions linked to strikes against Iran. The dramatic escalation in transatlantic tensions occurred during a meeting with German Chancellor Friedrich Merz, where Trump declared Spain "has been terrible" and announced his intention to sever all economic ties.
"We're Going to Cut Off All Trade With Spain"
During the meeting with Chancellor Merz, Trump told reporters: "We're going to cut off all trade with Spain. We don't want anything to do with Spain." He specifically referenced Spain's refusal to heed U.S. calls for all NATO members to spend five percent of their GDP on defence, adding dismissively: "Spain has absolutely nothing that we need."
The president revealed he had already instructed Treasury Secretary Scott Bessent to "cut off all dealings" with Spain. This threat follows the recent relocation of 15 U.S. aircraft, including refuelling tankers, from the Rota and Moron military bases in southern Spain after the country's Socialist leadership explicitly prohibited their use for attacks on Iran.
Legal Authority and International Pushback
Trump asserted his executive authority to implement such measures, stating: "All business having to do with Spain, I have the right to stop it. Embargoes - do anything I want with it - and we may do that with Spain." He expressed frustration with last month's Supreme Court ruling that his broadest global tariffs were illegal under national emergencies law.
Treasury Secretary Bessent confirmed that the Supreme Court had affirmed Trump's embargo powers under the International Emergency Economic Powers Act, adding that the U.S. Trade Representative and Commerce Department would begin investigations into how to penalise Spain under other trade laws.
However, German Chancellor Merz delivered a firm rebuke in private discussions, telling Trump that Spain could not be excluded from the trade agreement reached between Brussels and Washington last year. "I said that Spain is a member of the European Union and we negotiate about tariffs with the United States only together or not at all," Merz explained to reporters afterward. "There is no way to treat Spain particularly badly."
Legal Experts Question National Security Justification
Trade law experts expressed skepticism about the legal foundation for such an embargo. Jennifer Hillman, a trade law professor at Georgetown University, noted that while Trump could impose a trade embargo under IEEPA, he would need to declare Spain an "unusual and extraordinary" threat to the United States—a move that would go "well beyond" any previous emergency declaration.
Peter Shane, an adjunct law professor at New York University, questioned the rationale: "It's hard to see, however, how Spain denying us the use of air bases on its territory for us to launch an unprovoked attack on Iran poses 'an unusual and extraordinary threat' to our national security or foreign policy."
Spain's Response and Economic Implications
The Spanish government responded with a statement emphasizing that the United States must respect the autonomy of private businesses, international law, and bilateral trade agreements between the U.S. and European Union. Madrid asserted it had sufficient resources to contain the potential impact of a trade embargo and support affected sectors, while continuing to advocate for free trade and economic cooperation with partners.
Spain maintains significant economic ties with the United States as the world's top exporter of olive oil and a major supplier of auto parts, steel, and chemicals to American markets. However, according to U.S. Census Bureau data, the United States actually maintained a trade surplus with Spain for the fourth consecutive year in 2025, totaling $4.8 billion with U.S. exports of $26.1 billion and imports of $21.3 billion. American exports of crude oil and liquefied natural gas to Spain have shown consistent growth in recent years.
Broader Political Context
The confrontation represents another chapter in the strained relationship between Trump and Spanish Prime Minister Pedro Sanchez, one of Europe's dwindling number of left-leaning leaders. Sanchez has previously risked Trump's ire with several policy decisions, including refusing to allow vessels transporting weapons to Israel to dock in Spanish ports.
Chancellor Merz also addressed the ongoing pressure within Europe regarding defence spending, noting: "We are trying to convince Spain to catch up with the three or 3.5 percent which we agreed on in NATO." He clarified that Spain's defence spending levels were unrelated to the current trade negotiations, highlighting the complex interplay of security and economic issues in transatlantic relations.
