Spain Defies Trump Trade Threat Over NATO and Iran Stance

Spain has firmly rejected President Donald Trump's threat to halt all trade with the country after its refusal to allow US military bases in Spain to be used for strikes against Iran.

The dispute escalated when Prime Minister Pedro Sánchez condemned the US-Israeli attacks on Iran as a breach of international law and called for dialogue. Spanish Foreign Minister José Manuel Albares later clarified that the jointly operated bases at Rota and Morón are under Spanish sovereignty and "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."

In response, the US moved 15 aircraft, including refuelling tankers, from the southern Spanish bases. Trump told reporters he had directed Treasury Secretary Scott Bessent to "cut off all dealings" with Spain, describing the country's stance as "terrible."

The Spanish government responded with a statement asserting it has "the necessary resources to contain the possible impact of the trade embargo" and stressing that "the US must comply with international law and bilateral EU-US trade agreements."

The confrontation reflects broader transatlantic tensions over the Iran conflict and NATO obligations. Spain has also resisted US pressure for NATO members to boost defence spending to five percent of GDP by 2035.

Despite the rhetoric, Spain may be less vulnerable to economic retaliation than other European nations. US Census Bureau data shows the United States maintained a trade surplus with Spain for the fourth consecutive year in 2025, exporting $26.1 billion worth of goods while importing $21.3 billion.

This dispute marks the latest strain in US-Spanish relations, following Sánchez's 2024 refusal to allow vessels transporting weapons to Israel to dock in Spanish ports.