U.S. President Donald Trump has warned that the United States may suspend all trade with Spain after Madrid blocked American access to its military bases for operations related to Iran.
Trump criticized Spain as being ‘terrible’ and hinted that the U.S. might cut off all trade ties.
“I could tomorrow—or today, even better—stop everything having to do with Spain, all business having to do with Spain,” Trump said on Tuesday.
It remains uncertain whether his administration will act on the threat or how it would enforce trade restrictions against the EU member. His remarks further escalate tensions between the two nations, which have already been strained, particularly over Spain’s reluctance to meet Trump’s calls for NATO allies to boost their defense spending.
Trump and Treasury Secretary Scott Bessent asserted that the United States has the legal authority to impose an embargo on goods imported from Spain.
Trump conveyed his dissatisfaction with the Spanish government for declining to raise its defense expenditure to 5% of gross domestic product, in contrast to several other European nations that have complied. He has previously indicated that Spain could be subject to economic penalties.
The European Union’s framework permits the free movement of goods among its 27 member states, which would pose significant challenges to any attempt to impose trade restrictions on an individual country.
German Chancellor Friedrich Merz, following his meeting with President Trump, stated that he emphasized to the president that Spain is an integral member of the European Union and that any trade agreements with the bloc must encompass Spain.
The Spanish government stressed that any U.S. review of trade relations with Spain must respect the autonomy of private enterprises, adhere to international law, and honor existing bilateral agreements between the EU and the United States.
In 2025, the United States exported approximately $26 billion in goods to Spain, while imports from Spain totaled around $21 billion, according to data from the U.S. Census Bureau.
AUTOMOTIVE WORLD | South Africa Targets Global EV Battery Manufacturing
