President Donald Trump launched another attack on the Spanish government on Wednesday, telling journalist David Alandete that he might "cut off all trade with them" while criticizing the country's leadership as "terrible," though he praised the Spanish people.
Trump's remarks echo and intensify threats he made on March 3 during a White House press conference with German Chancellor Friedrich Merz, where he stated, "We are going to cut all trade with Spain. We don't want anything to do with Spain."
In his latest comments, Trump was unwavering: "They are not cooperating at all. They are doing a really bad job. I might cut off all trade with them. They have been terrible with NATO and refuse to pay their fair share. The people of Spain are fantastic, but their leadership is awful."
Root Cause of the Dispute
The crisis was sparked by the Spanish government, led by Pedro Sánchez, refusing to allow U.S. military bases in Rota and Morón to be used for Operation Epic Fury, a joint offensive by the United States and Israel against Iran on February 28. Spain cited the 1988 bilateral defense agreement, which requires Spanish approval for uses of the bases not specified in NATO defense.
In response, the U.S. relocated at least 15 KC-135 Stratotanker aircraft from those bases to Germany's Ramstein base and other locations. Spanish Defense Minister Margarita Robles and Foreign Minister José Manuel Albares assured that "neither Morón nor Rota have conducted or will conduct any maintenance or support actions" concerning the attacks on Iran.
Rising Tensions and Economic Implications
Tensions escalated on March 4 when White House spokeswoman Karoline Leavitt claimed Spain had agreed to cooperate, a statement immediately refuted by Minister Albares in a direct response to the White House. Trump also instructed Treasury Secretary Scott Bessent to begin investigations for potential trade sanctions against Spain.
Adding to the base dispute is the conflict over defense spending. Trump demands Spain increase its military investment to 5% of GDP, a target set at the NATO summit in The Hague in June 2025. Spain reached 2% of GDP in 2025, fulfilling a commitment made in 2014, but the Sánchez government believes this level suffices, supported by an agreement with NATO Secretary General Mark Rutte.
Both Italy and France sided with Spain in rejecting involvement in the offensive against Iran, which in its first seventy-two hours targeted over 1,700 Iranian sites, including nuclear facilities in Natanz, Isfahan, and Fordow.
Impact on Bilateral Trade
The bilateral trade between Spain and the United States amounts to approximately $46 billion annually. Spanish exports, focused on the agro-food and industrial sectors, total about $16 billion. Furthermore, Spain imports nearly 40% of its liquefied gas supply from the U.S., making any trade disruption particularly impactful. Back in October 2025, Trump suggested expelling Spain from NATO for not raising its defense spending to 5% of GDP.
Frequently Asked Questions About U.S.-Spain Relations
Why is Trump considering cutting trade with Spain?
Trump is contemplating cutting trade with Spain due to disagreements over NATO contributions and Spain's refusal to allow U.S. bases to be used for operations against Iran.
What are the potential consequences of a trade cut-off with Spain?
A trade cut-off could disrupt the $46 billion annual trade between the two countries, impacting sectors such as agro-food and industrial exports from Spain, as well as their gas imports from the U.S.
What was the root cause of the U.S.-Spain crisis over military bases?
The crisis originated from Spain's refusal to allow the use of its military bases for a U.S.-Israeli operation against Iran, invoking a 1988 defense agreement requiring Spanish authorization for such uses.