Trump threatens Spain with a trade war after it refused to hand over its military bases to Iranian efforts

“We will cut off all trade with Spain,” Trump told reporters during an Oval Office meeting with German Chancellor Friedrich Merz. “We don’t want anything to do with Spain.”

The US President’s statements came a day after Spanish Foreign Minister Jose Manuel Albarez announced that his country would not allow the United States to use the joint bases in southern Spain in any strikes not covered by the United Nations Charter. Albarez pointed out that the military bases in Spain were not used in the war Weekend attack on Iran.

It is unclear how Trump will cut off trade with Spain, given that Spain falls under the umbrella of the European Union. The European Union negotiates trade deals on behalf of all 27 member states.

A spokesman for Spanish Prime Minister Pedro Sanchez’s office said on Tuesday: “If the US administration wants to review the trade agreement, it must do so while respecting the autonomy of private companies, international law and bilateral agreements between the European Union and the United States.”

The European Union said it expected the Trump administration to respect the trade deal it struck with the 27-nation bloc in Scotland last year after months of economic uncertainty over Trump’s tariff war.

“The Commission will always ensure that the interests of the European Union are fully protected,” European Commission spokesman Olof Gehl said.

This was just the latest example of the president using the threat of tariffs or trade embargoes as punishment, and came on the heels of a Supreme Court decision that struck down… Trump’s global tariffs are far-reaching. While the court said the International Emergency Economic Powers Act does not allow a president to unilaterally impose sweeping tariffs, Trump now asserts that the court instead allows him to impose broad embargoes on other countries of his choosing.

Trump also complained again on Tuesday about Spain’s decision last year Rolling back from NATO’s defense spending target of 5%.. At the time, Spain said it could reach its military capabilities by spending 2.1% of its gross domestic product, a move that Trump strongly criticized and responded to with threats of tariffs as well.

Trump said Spain is “the only NATO country that will not agree to an increase of up to 5%” in NATO spending. “I don’t think they agreed to go ahead with anything. They wanted to keep it at 2% and not pay the 2%.”

Merz pointed out that Trump was right, and said: “We are trying to convince them that this is part of our common security, and we must all adhere to it.”

A spokesman for Sanchez’s office said that Spain defended its position on Tuesday, saying that it is “a key member of NATO, fulfills its obligations and makes a significant contribution to the defense of European territories.”

During the Oval Office meeting, Trump turned to US Treasury Secretary Scott Bessent to express his opinion on the president’s authority to impose the ban.

“I agree that the Supreme Court reaffirmed your ability to enforce the ban,” Besant said. The US Trade Representative and the Department of Commerce “will begin investigations and we will move forward with those investigations,” Besant added.

A U.S. Treasury Department representative did not respond to an Associated Press request for additional comment.

Sanchez criticized the American and Israeli attacks on Iran, describing them as “unjustified” and “dangerous” military intervention. His government called for immediate de-escalation and dialogue and also condemned Iranian strikes across the region.

“Spain has absolutely nothing we need except great people,” Trump said. “They have great people, but they don’t have great leadership.”

Spain’s position on the use of US bases on its soil represents the latest escalation in its relationship with the Trump administration. Under Sánchez, Europe’s last major progressive leader, Spain has also been an outspoken critic of Israel’s war in Gaza.

___

Nishadham reported from Madrid. AP journalist Sam McNeil in Brussels contributed.