Trump threatens to halt trade with Spain over military base access

March 3, 2026

President Donald Trump has threatened to completely halt trade with Spain after the country refused to allow US forces to use its military bases for operations against Iran. Trump called Spain "terrible" and claimed he has legal authority to impose an embargo, though it remains uncertain whether this threat will be implemented or how it would work given Spain's EU membership. The conflict stems from Spain's characterization of US-Israeli strikes on Iran as violations of international law, as well as ongoing disputes over NATO defense spending levels.

Who is affected

Spain and its government, particularly Prime Minister Pedro Sánchez
Spanish companies engaged in trade with the United States
US businesses that trade with Spain (approximately $26 billion in exports and $21 billion in imports annually)
The European Union as a bloc and its 27 member states
US administration officials including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer
NATO allies involved in defense spending discussions
German Chancellor Friedrich Merz
Companies exporting Spanish pharmaceutical products and olive oil to the US

What action is being taken

Spain is barring the US from using military bases in southern Spain for operations related to Iran
The Spanish government is asserting its position that it must respect international law and bilateral agreements
German Chancellor Friedrich Merz is communicating to Trump that Spain must be included in any EU trade deals

Why it matters

This situation matters because it represents a significant escalation in tensions between the United States and a NATO ally and EU member state. A unilateral US trade embargo against Spain would challenge the fundamental structure of EU economic integration, where goods move freely between member states, potentially creating a broader rift between the US and Europe. The dispute also highlights growing divisions within the transatlantic alliance over military operations, international law, and defense spending obligations. Additionally, such actions could disrupt billions of dollars in bilateral trade and set a precedent for how the US engages with allies who resist its foreign policy objectives.

What's next

No explicit next steps stated in the article

Read full article from source: BBC