President Donald Trump on Tuesday threatened to cut off all trade with Spain, unleashing his fury at a NATO ally that refused to let U.S. military bases on its soil be used for strikes on Iran and has resisted his demands for higher defense spending.
“We’re going to cut off all trade with Spain,” Trump told reporters during an Oval Office meeting with German Chancellor Friedrich Merz. “We don’t want anything to do with Spain”.
The threat came a day after Spanish Foreign Minister José Manuel Albares confirmed that Madrid had barred the U.S. from using jointly operated bases in southern Spain for any strikes not covered by the United Nations charter. Flight tracking data showed 15 U.S. aircraft, including KC-135 refueling tankers, departing the Rota and Morón bases — some headed to Germany, others to France.
Trump’s anger was multi-layered.
“Spain has been terrible, in fact I told Scott to cut off all dealings with Spain,” he said, referring to Treasury Secretary Scott Bessent . “I could tomorrow — or today, even better — stop everything having to do with Spain, all business having to do with Spain”.
The Base Dispute
Spain’s decision was rooted in legal principle. Prime Minister Pedro Sánchez on Sunday called the U.S.-Israeli attacks on Iran an “unjustified, dangerous military intervention” in violation of international law. Officials in Madrid argued that allowing U.S. forces to use Spanish facilities for the operation would breach the UN Charter.
Foreign Minister Albares was unequivocal: “Spanish bases are not being used for this operation, and they will not be used for anything not included in the agreement with the United States, or for anything that is not in accordance with the Charter of the United Nations”.
Trump dismissed the concerns with characteristic bravado.
“We could use the base if we want,” he said. “We could just fly in and use it, nobody is going to tell us not to use it. But we don’t have to”.
The NATO Spending Grievance
Beyond the base dispute, Trump has long fumed at Spain’s refusal to meet his defense spending demands. Last year, Sánchez rejected the NATO proposal for members to increase defense spending to 5% of GDP by 2035 — more than double the original 2% target — calling it “unreasonable” and “counterproductive”.
“Every European nation, at my request, paid 5%,” Trump claimed Tuesday. “And Spain didn’t do it”.
Merz, sitting alongside Trump, sought to frame the issue within alliance commitments. “As the president said, it’s correct, Spain is the only one who is not willing to accept that,” the German chancellor said. “We are trying to convince them that this is part of our common security”.
Trump has previously suggested Spain should face “trade punishment” over the defense spending dispute. Tuesday’s threat escalates that rhetoric dramatically.
The Legal Question
It remains unclear how — or whether — the Trump administration could cut off trade with a single European Union member state. The EU negotiates trade deals on behalf of all 27 member countries, and goods move freely within the bloc.
Trump and Bessent both claimed the Supreme Court’s recent ruling on tariffs had affirmed the president’s authority to impose embargoes. “You have the strong power that the Supreme Court clarified — we know you can use it,” Bessent said.
But U.S. Trade Representative Jamieson Greer was notably non-committal when pressed by the president for his view. “We’re going to talk about it with you,” Greer said.
The EU pushed back immediately. “A deal is a deal,” European Commission deputy chief spokesman Olof Gill told Spanish newspaper El Mundo. “The Commission will always ensure that the interests of the European Union are fully protected”.
Spain’s government responded with a defiant statement Tuesday evening: “Our country has the necessary resources to contain potential impacts, assist sectors that may be affected, and diversify supply chains”.
The Trade Numbers
In 2025, the U.S. exported roughly $26 billion worth of goods to Spain and imported about $21 billion — a $4.8 billion surplus in America’s favor. Spain’s top exports to the U.S. include pharmaceutical products, olive oil, auto parts, steel, and chemicals.
The surplus means a trade cutoff could hurt U.S. exporters more than Spanish ones — a reality analysts noted as Trump made his threat.
“Spain has absolutely nothing that we need other than great people,” Trump said. “They have great people, but they don’t have great leadership”.
A Broader European Rebuke
Trump didn’t stop with Spain. He also criticized the UK for being “very uncooperative” with his push to use military bases for strikes on Iran, though he stopped short of threatening trade restrictions.
“This is not the age of Churchill,” Trump said. “The UK has been very, very uncooperative with that stupid island that they have that they gave away and took a 100-year lease” — a reference to the Chagos Islands deal, which includes the joint US-UK military base on Diego Garcia.
He also attacked London’s mayor, calling Sadiq Khan “a terrible Mayor of London, terrible…. he’s an incompetent guy”.
What Comes Next
Spanish Prime Minister Sánchez has scheduled remarks for Wednesday morning about the escalating dispute. His government has made clear it will not back down, while also signaling it is prepared to weather any economic consequences.
Analysts suggest Sánchez may welcome the confrontation. “This is exactly what Sánchez wanted,” said Ramón González Férriz, a prominent Spanish political columnist. “He has been looking to create an open confrontation with Donald Trump since last January. He knows Donald Trump is very unpopular in Spain”.
For Trump, the dispute serves multiple purposes: punishing a recalcitrant ally, reinforcing his demands for NATO spending, and demonstrating that his “America First” posture applies even to longtime partners.
Whether he follows through on the trade threat (and whether he legally can) remains to be seen.
