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5 Mar 2026 16:13
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  •   Home > News > International

    Why is Donald Trump threatening to end all US trade with Spain?

    Spain's Prime Minister Pedro Sánchez has doubled down on his criticism of the military actions of the US and Israel in Iran, just a day after Donald Trump threatened to end all trade with Spain.


    Spain's Prime Minister Pedro Sánchez has doubled down on his criticism of the military actions of the US and Israel in Iran, just a day after Donald Trump threatened to end all trade with Spain.

    The US president lashed out at Spain on Tuesday, local time, saying he's asked for all trade dealings between the two countries to be cut off over its lack of support in strikes against Iran.

    Why is Trump angry?

    The Spanish government denied the US' requests to use Spanish bases as part of Operation Epic Fury, saying change cannot happen unilaterally, and that it works in compliance with international law.

    In response, Trump on Tuesday called Spain a "terrible ally" and said, "we could use their base if we want".

    He was referencing the Rota and Morón military bases in southern Spain that the US and Spain share, but which remain under Spanish command.

    "We could just fly in and use it … Nobody's going to tell us not to use it, but we don't have to," he said.

    This is just the latest flare-up in the relationship between the two leaders.

    Sánchez, widely regarded as Europe's last major progressive leader, also refused to join NATO allies in a pledge to boost defence spending to 5 per cent of GDP as demanded by Trump.

    The American leader also threatened to respond to the move with tariffs.

    Meanwhile, Trump also levelled more criticism at UK Prime Minister Sir Keir Starmer, saying the country was too slow to provide Americans permission to use British air bases in the attacks on Iran.

    What is Spain's stance?

    Sánchez has called the US and Israeli attacks on Iran an "unjustifiable" and "dangerous" military intervention.

    In a televised address on Wednesday, Sánchez said: "We are not going to be complicit in something that is bad for the world and is also contrary to our values and interests, just out of fear of reprisals from someone.

    "In short, the position of the government of Spain can be summarised in four words," Sánchez said.

    "No to the war."

    Sánchez expressed concern the attacks on Iran could lead to another costly military quagmire in the Middle East, comparing it to the Iraq War — which he said increased terrorism, increased energy prices and led to a less secure world.

    Spain's participation in the Iraq War sparked huge street demonstrations, and many Spaniards blame it for the March 11, 2004 Madrid train bombings that killed nearly 200 people, and a branch of Al-Qaeda claimed responsibility.

    Can the US actually cut off all trade?

    It's not clear how Trump would cut off trade with Spain, which is a member of the European Union.

    The EU, which allows goods to move freely between the 27 countries in the bloc, negotiates trade on behalf of all its member states — complicating any bid to impose trade restrictions on a single one.

    When asked in an interview with CNBC whether a trade embargo with Spain would be possible, US Treasury Secretary Scott Bessent said on Wednesday, "it would be a combination effort."

    He didn't explain further, but said Spain's refusal to allow the US to use its bases in the weekend attack on Iran endangered American lives.

    "Anything that slows down our ability to engage and prosecute this war in the fastest, most effective manner puts American lives at risk," Bessent said.

    What would ceasing trade affect?

    Last year, Spain's central bank issued a report concluding Europe's fourth-largest economy was relatively cushioned compared with the EU average when it came to exposure to tariffs by Trump.

    Spain's exports and imports with the US accounted for 4.4 per cent of gross domestic product, the Bank of Spain said, while trade with the US for the EU as a whole was 10.1 per cent.

    Exports of Spanish goods to the US accounted for 1 per cent of Spain's GDP, or 16 billion euros ($26 billion), the bank said, making the US Spain's sixth-largest export market for goods.

    Pharmaceutical products, olive oil, refined gas and electrical transformers are among Spain's main exports to the US, according to The Observatory of Economic Complexity.

    Are Trump's tariffs legal?

    Tuesday's threats from Washington were just the latest instance of the US president wielding tariffs or trade embargoes as punishment.

    The US Supreme Court last month struck down Trump's far-reaching global tariffs, saying emergency powers do not allow the president to unilaterally impose sweeping tariffs.

    However, Trump maintains the court allows him to instead impose full-scale embargoes on other nations of his choosing.

    What is the rest of Europe's reaction?

    "Trump's words don't always become policy. We will have to see if he follows through, and how," said Angel Saz Carranza, director of the Esade Center for Global Economy and Geopolitics, a Spanish think tank.

    European Council chief Antonio Costa wrote on X he had called Sanchez to "express the EU's full solidarity with Spain".

    "The EU will always ensure that the interests of its member states are fully protected," Costa said.

    French President Emmanuel Macron also called to "express France's European solidarity in response to the recent threats of economic coercion targeting Spain," his office said.

    What happens now?

    Spain has not had any direct contact with the US since Trump's criticisms, Economy Minister Carlos Cuerpo said on Wednesday.

    "I want to send a message of calm," Cuerpo told Spanish radio station Cadena Ser.

    "Beyond those comments (by Trump), there have not been any more moves (by the US)."

    © 2026 ABC Australian Broadcasting Corporation. All rights reserved

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