President Donald Trump has escalated diplomatic tensions with Spain by threatening to cut off all trade with the European nation, after Madrid refused to support US military actions related to strikes on Iran and resisted calls to increase its defence spending.
On Tuesday, speaking at the White House with German Chancellor Friedrich Merz, Trump said he had instructed US Treasury Secretary Scott Bessent to “cut off all dealings” with Spain and make clear that “we’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”
The dispute stems primarily from Spain’s decision not to allow the United States to use Spanish military bases — including jointly operated facilities at Rota and Morón in southern Spain — for operations linked to the US and Israeli attacks on Iran. Spanish officials have repeatedly stated that any use of their bases must comply with Spanish sovereignty and international law, and have not authorised their use in the current conflict without clear legal backing.
Trump also criticized Spain over its defence spending, accusing it of failing to meet NATO targets. The United States has been pushing NATO allies to significantly raise military expenditure, a push that has been resisted by Madrid, which currently maintains defence outlays well below the more ambitious benchmarks sought by Washington.
Spanish Prime Minister Pedro Sánchez responded firmly to Trump’s threat, rejecting pressure to support the war and reiterating his government’s stance of calling for de-escalation and diplomatic solutions. Sánchez stressed that Spain would not be “complicit” in military actions it considers harmful to global security, even in the face of economic threats.
Madrid also noted that any attempt by the United States to impose a trade embargo could be complicated by Spain’s membership in the European Union, which negotiates trade agreements on behalf of all member states. EU officials have expressed solidarity with Spain and reiterated their commitment to defend EU trade interests, saying they expect the US to honour existing bilateral trade commitments.
The US-Spain trade relationship, while modest compared with some other US partners, still involves tens of billions of dollars in goods and services each year, with the United States posting a trade surplus in recent years.
The widening dispute highlights growing strains in transatlantic relations over military cooperation, trade, and NATO commitments — and raises questions about how far the United States might go to leverage economic policy in pursuit of foreign policy goals.
