US threatens trade action after Spain blocks military bases

2026-03-04 - 11:47

By Favour Ulebor & Agency Reports The United States has warned of possible trade sanctions against Spain after Madrid barred the US from using its military bases at Morón and Rota for operations linked to Iran. At the White House, President Donald Trump called Spain “terrible” and said, “We’re going to cut off all trade. We don’t want anything to do with Spain. I could tomorrow, or today even better; stop everything having to do with Spain, all business having to do with Spain.” US officials, including Treasury Secretary Scott Bessent, said the administration could legally impose an embargo on Spanish imports. Meanwhile, US Trade Representative Jamieson Greer was less definitive, stating: “We’re going to talk about it with you... if you need to use it to assure national and economic security, we’ll do it.” Trump also expressed frustration over Spain’s refusal to increase defence spending to 5% of GDP, the NATO target. In 2025, the US exported about $26 billion in goods to Spain, while importing roughly $21 billion, including pharmaceuticals and olive oil. Spain’s Prime Minister Pedro Sánchez responded in a televised address from La Moncloa, defending the nation’s decision. “The question is not if we are on the side of the ayatollahs — nobody is. The question is whether we are in favour of peace and international legality,” he said. Madrid emphasized that barring US military access aligns with the UN charter and international law. The government is reviewing measures to protect citizens from potential economic fallout and reiterated Spain’s consistent anti-war stance, referencing past conflicts including Ukraine, Gaza, and the 2003 Iraq invasion. Germany’s Chancellor Friedrich Merz reportedly told the US that Spain, as part of the European Union, must be included in any trade negotiations with the bloc. Spain stressed that trade discussions must respect international law, bilateral agreements, and private-sector autonomy. Questions remain over whether the US will pursue economic measures given Spain’s EU membership and legal protections.