Trump Threatens Trade Cutoff as Spain Rejects US Pressure Over Iran Strikes

A diplomatic confrontation has erupted between the United States and Spain after US President Donald Trump threatened to halt trade with the European nation, accusing Madrid of refusing to support Washington’s military actions against Iran and failing to meet NATO defence spending targets .

The tensions intensified after Spain declined to allow the United States to use joint military bases at Rota and Morón in southern Spain for operations connected to the recent US–Israeli strikes on Iran . Spanish officials said such military use would only be permitted if it complied with the United Nations Charter , stressing that the bases - although jointly operated - remain under Spanish sovereignty and command .

Speaking during a meeting in the Oval Office with German Chancellor Friedrich Merz , Trump criticised Spain’s position and warned Washington could “cut off all trade with Spain.” He also accused Madrid of failing to contribute sufficiently to the NATO alliance, arguing that Spain was unwilling to support the new 5 per cent defence spending target agreed by members.

Spain has defended its policy, saying it can meet its military capability commitments while spending around 2.1 per cent of GDP on defence , far below the higher target advocated by the US. Officials in Madrid insist the country remains a key contributor to European security and NATO operations .

Spanish Prime Minister Pedro Sánchez strongly pushed back against Washington’s pressure, describing the strikes on Iran as an “unjustifiable” and “dangerous” escalation in an already volatile region. In a televised address, he warned that expanding the conflict could be like “playing Russian roulette with millions of lives.” Summarising Spain’s position, Sánchez declared that the government’s stance could be expressed in four words: “No to the war.”

Despite Trump’s threats, experts say cutting trade with Spain would be complicated because the country is part of the European Union , which negotiates trade agreements collectively on behalf of all 27 member states . EU officials have signalled that the bloc would act to protect its economic interests if Washington attempts punitive trade measures.

The dispute has raised concerns among Spanish business groups , which describe the United States as a critical economic partner . According to the Bank of Spain , exports of Spanish goods to the US amount to roughly €16 billion annually , making it one of Spain’s most important export destinations.

Spanish Economy Minister Carlos Cuerpo has urged calm, noting that beyond Trump’s public comments there have been no formal diplomatic or economic measures taken by Washington.

The standoff reflects growing strains within the transatlantic alliance , where divisions over Middle East policy, defence spending, and international law are increasingly testing unity among NATO partners.