Trump Threatens Spain Trade Cutoff Over Iran Attacks And NATO Spending Row

Washington: President Donald Trump warned on Tuesday of severing all commercial ties with Spain, pointing to the European country’s reluctance to back U.S. and Israeli military actions against Iran, as well as its opposition to boosting contributions to NATO’s defense budget.
During an Oval Office session with German Chancellor Friedrich Merz, Trump declared to journalists, “We’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”
The remarks followed Spanish Foreign Minister José Manuel Albares’ statement on Monday that Madrid would bar U.S. forces from utilizing shared military installations in southern Spain for operations lacking United Nations authorization. Albares clarified that those facilities played no role in the recent assault on Iran.
Trump countered that despite the veto, “we could use their base if we want. We could just fly in and use it. Nobody’s going to tell us not to use it, but we don’t have to.”
Details remain fuzzy on executing such a cutoff, as Spain operates within the European Union’s framework, where the bloc handles negotiations for its 27 members.
A spokesperson from Prime Minister Pedro Sánchez’s office responded, “If the U.S. administration wishes to review the trade agreement, it must do so respecting the autonomy of private companies, international law, and bilateral agreements between the European Union and the United States.”
The European Union voiced expectations that the Trump team uphold a pact finalized with the 27-country alliance in Scotland last year, amid prior tariff tensions. “The Commission will always ensure that the interests of the European Union are fully protected,” affirmed European Commission spokesperson Olof Gill.
This episode marks another instance of Trump deploying tariff or embargo threats as leverage, shortly after a Supreme Court ruling invalidated his broad global tariffs under the International Emergency Economic Powers Act, while affirming his power to enact targeted embargoes on select nations.
Trump reiterated grievances over Spain’s 2025 withdrawal from NATO’s 5% GDP defense spending goal, opting instead for 2.1% to achieve its objectives, a stance he lambasted previously with tariff warnings.
“Spain is the only country that in NATO would not agree to go up to 5%,” Trump stated. “I don’t think they agreed to go up to anything. They wanted to keep it at 2% and they didn’t pay the 2%.”
Merz concurred, adding, “We are trying to convince them that this is a part of our common security, that we all have to comply with this.”
Spain’s office rebutted, describing the nation as “a key member of NATO, fulfilling its commitments and making a significant contribution to the defense of European territory.”
In the meeting, Trump consulted Treasury Secretary Scott Bessent on embargo powers. “I agree that the Supreme Court reaffirmed your ability to implement an embargo,” Bessent replied, noting that the U.S. Trade Representative and Commerce Department would launch probes to advance the process.
The U.S. Treasury Department offered no further response to an Associated Press inquiry.
Sanchez has denounced the Iran strikes as “unjustifiable” and “dangerous,” urging swift de-escalation and talks, while also denouncing Iran’s regional reprisals.
“Spain has absolutely nothing that we need other than great people. They have great people, but they don’t have great leadership,” Trump remarked.
Spain’s base-use policy underscores ongoing strains with the Trump administration. Under progressive leader Sánchez Europe’s remaining major figure of that stripe the country has vocally opposed Israel’s Gaza campaign.
Also Read: India Approves 5 More S-400 Systems From Russia: IAF Boost Amid Regional Threats



