Washington anger over military base refusal
A diplomatic dispute has intensified after US President Donald Trump made a threat to halt trade with Spain following Madrid’s refusal to allow American forces to use military bases on Spanish territory for operations linked to Iran.
Speaking at the White House on Tuesday during a meeting with German Chancellor Friedrich Merz, Trump criticised Spain’s decision and suggested sweeping economic retaliation.
“Spain has been terrible,” Trump said. “We’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”
The trade threat from Trump toward Spain came after Madrid barred the United States from using the jointly operated bases at Morón and Rota for strikes related to the conflict with Iran.
Questions over feasibility of embargo
It remains unclear whether the US administration will follow through on the trade threat involving Spain or how Washington could legally halt trade with a single member state of the European Union.
Trump and US Treasury Secretary Scott Bessent both suggested the United States could impose an embargo on Spanish imports. However, US Trade Representative Jamieson Greer appeared more cautious when asked for his view.
“We’re going to talk about it with you,” Greer said. “You have the strong power that the Supreme Court clarified—we know you can use it. And if you need to use it to assure national and economic security, we’ll do it.”
The White House did not immediately respond to requests for clarification about the potential measures.
Any attempt to restrict trade with Spain could face complications because goods move freely across the European Union’s 27-member single market, making it difficult to target one country within the bloc.
NATO tensions and defence spending dispute
The dispute also reflects broader tensions between Washington and Madrid over defence spending within NATO.
Trump has repeatedly criticised Spain for refusing to increase its defence spending to 5% of gross domestic product, accusing the country of being a “terrible partner” in the alliance.
According to data from the US Census Bureau, the United States exported roughly $26 billion worth of goods to Spain in 2025, while imports from Spain totalled about $21 billion. Spanish exports to the US include pharmaceutical products and olive oil.
The Spanish government said that if Washington seeks to review trade relations, it must respect international law, the autonomy of private companies and existing agreements between the European Union and the United States.
Sánchez rejects pressure and reiterates anti-war stance
Spanish Prime Minister Pedro Sánchez responded strongly to the escalating dispute with Washington, reaffirming Madrid’s opposition to military escalation and what he described as violations of international law.
In a televised address from his residence at La Moncloa, Sánchez summarised the Spanish government’s position in simple terms: “no to war”.
Reflecting on the wars in Ukraine and Gaza, as well as the 2003 invasion of Iraq, he warned against repeating past mistakes.
“The question is not if we are on the side of the ayatollahs—nobody is,” Sánchez said. “The question is whether we are in favour of peace and international legality.”
“You cannot answer one illegality with another, because that is how the great catastrophes of humanity begin.”
Madrid has argued that allowing US forces to use the bases in southern Spain for strikes on Iran would violate the United Nations charter.
European leaders express solidarity
Spain has received backing from several European leaders following the escalating dispute.
The Élysée Palace said French President Emmanuel Macron had expressed solidarity with Spain during a phone call with Sánchez. European Council President António Costa also spoke with the Spanish leader to convey the European Union’s support.
German Chancellor Friedrich Merz said he had made clear to Trump that Spain is part of the EU and that any trade arrangements with the bloc must include all member states.
Political pressures at home
The confrontation with Washington comes at a sensitive political moment for Sánchez.
His coalition government has faced months of political pressure and speculation about its stability, while corruption allegations involving political allies have weakened his position.
Spain has also been among the most outspoken European governments regarding the war in Gaza, describing Israel’s actions as genocide and recognising a Palestinian state earlier than many other EU countries.
Historical echoes of Iraq war debate
In his speech, Sánchez invoked the legacy of the 2003 invasion of Iraq, warning that military intervention in Iran could have similar consequences.
He referred to the meeting of the so-called “Azores trio”—then US president George W. Bush, UK prime minister Tony Blair and Spanish conservative leader José María Aznar—which took place days before the Iraq invasion.
According to Sánchez, the decision left Europeans with “a more insecure world and worse life”.
The Iraq war remains a powerful reference point in Spanish politics, where the conservative government’s support for the invasion triggered massive anti-war protests and is widely believed to have contributed to the Socialist Party’s election victory in 2004.
Uncertainty over economic consequences
Despite the strong rhetoric, uncertainty remains over whether the trade threat made by Trump toward Spain will result in concrete economic measures.
At the same time, Sánchez’s firm stance may carry political advantages domestically. A recent poll by Spain’s CIS research institute found that 77% of Spaniards hold a “bad” or “very bad” opinion of Trump.
For now, businesses and political leaders in Spain are watching closely as tensions between Washington and Madrid raise concerns about possible economic repercussions.
Also read: Trump says “it’s too late” for US-Iran talks
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