WASHINGTON/MADRID: US President Donald Trump on Tuesday threatened to impose a full trade embargo on Spain after Madrid declined to allow US forces to use military bases on its territory for operations linked to strikes on Iran.
Speaking during a meeting with German Chancellor Friedrich Merz, Trump criticised Spain’s stance and said he had instructed Treasury Secretary Scott Bessent to consider cutting off trade relations.
“We’re going to cut off all trade with Spain,” Trump told reporters, adding that he believed he had the authority to halt business dealings and impose embargo measures if deemed necessary for national and economic security.
The dispute follows Spain’s refusal to permit US aircraft stationed at the Rota and Moron air bases in southern Spain to be used for missions related to the Iran strikes. Reports said the US relocated 15 aircraft, including refuelling tankers, after Madrid’s decision.
Trump also reiterated criticism of Spain’s defence spending levels, noting that it had not met US calls for NATO members to allocate five percent of gross domestic product to defence.
However, Chancellor Merz said Spain could not be treated separately from the European Union in trade matters. He stated that tariff negotiations with Washington were conducted collectively by the EU and that there was “no way” to single out Spain for punitive measures.
US Trade Representative Jamieson Greer and Treasury Secretary Bessent indicated that options were being examined, citing the president’s powers under the International Emergency Economic Powers Act (IEEPA). Bessent said relevant departments would explore potential legal avenues for action.
Legal experts cautioned that imposing a trade embargo would require the declaration of a national emergency, demonstrating that Spain posed an “unusual and extraordinary threat” to US national security — a threshold they described as high.
In response, the Spanish government said the United States must respect international law, bilateral trade agreements with the European Union and the autonomy of private enterprises. Madrid added that it had the resources to mitigate the potential impact of any trade restrictions but reaffirmed its commitment to free trade and economic cooperation.
According to US Census Bureau data, the United States recorded a trade surplus with Spain for the fourth consecutive year in 2025, amounting to $4.8 billion, with US exports valued at $26.1 billion and imports at $21.3 billion. Spain is the world’s largest exporter of olive oil and also ships auto parts, steel and chemicals to the US market, while imports of US crude oil and liquefied natural gas have increased in recent years.
Spanish Prime Minister Pedro Sánchez has previously taken positions at odds with Washington, including declining to allow vessels transporting weapons to Israel to dock in Spanish ports.
The latest development adds to growing transatlantic tensions amid the widening Middle East conflict and debates within NATO over defence spending commitments.