March 17, 2026 8:47 pm

Trump Threatens to End Trade With Spain Over Iran and NATO Disputes

Trump threatens to end trade with Spain due to lack of support on U.S.-Israeli attacks, sparking EU trade tensions.
Trump threatens to cut off trade with Spain

U.S.-Spain Trade Relations Strain Amid NATO Spending Dispute

WASHINGTON — President Donald Trump has issued a stern warning, threatening to cease all trade with Spain. This threat comes in response to Spain’s reluctance to support U.S. and Israeli military actions against Iran and its hesitance to boost NATO spending. “We’re going to cut off all trade with Spain,” Trump declared during a meeting with German Chancellor Friedrich Merz, signaling a significant diplomatic rift.

The tensions heightened after Spanish Foreign Minister José Manuel Albares stated that Spain would not permit the use of its military bases by the U.S. for any operations not sanctioned by the United Nations. This statement followed the recent attacks on Iran, where Spanish bases reportedly played no role.

Despite Spain’s position, Trump insisted that the U.S. could utilize the bases without permission, though he added, “we don’t have to.”

The mechanics of cutting trade with Spain—a member of the European Union—remain unclear as the EU manages trade agreements for its 27 member nations. A representative from Spanish Prime Minister Pedro Sánchez’s office emphasized that any trade negotiations must respect international law and existing EU-U.S. agreements.

The European Commission also weighed in, with spokesperson Olof Gill affirming that the EU expects the U.S. to adhere to a trade deal established last year. “The Commission will always ensure that the interests of the European Union are fully protected,” Gill stated.

Trump’s trade threat follows a Supreme Court decision limiting his authority to impose tariffs unilaterally. However, Trump claims the ruling permits him to enact full embargoes on countries at his discretion. Treasury Secretary Scott Bessent supported this interpretation, suggesting that investigations by the U.S. Trade Representative and Commerce Department would commence.

NATO spending has been another contentious issue, with Trump criticizing Spain for maintaining its military expenditure at 2.1% of GDP, below the 5% target he advocates. “Spain is the only country that in NATO would not agree to go up to 5%,” Trump remarked.

Chancellor Merz acknowledged Trump’s frustration, noting efforts to persuade Spain to meet the defense spending expectations. However, Spain maintains it is fulfilling its NATO commitments, contributing significantly to European defense.

Spain’s Prime Minister Sánchez has openly criticized U.S. and Israeli military actions in Iran, labeling them “unjustifiable” and “dangerous.” His administration calls for de-escalation and dialogue, while also condemning Iran’s regional attacks.

Trump’s remarks underscore ongoing challenges in U.S.-Spain relations, with the latter’s stance on military bases and NATO spending contributing to the strain. Spain, under Prime Minister Sánchez, also remains a vocal critic of Israeli actions in Gaza, further complicating diplomatic ties.

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