President Donald Trump said "Spain is behaving very badly," threatening to severely cut trade relations with Spain after the Spanish government refused to allow the U.S. military to use bases in the country for a mission to attack Iran. Meanwhile, Germany quickly warned the U.S. that it cannot discriminate in trade against any member of the European Union.
The conflict between the United States and Spain escalated sharply when President Donald Trump announced a threat to impose full trade sanctions on Spain in response to this NATO ally's refusal to allow the U.S. to use the Rota and Morón airbases in southern Spain for operations related to attacks on Iran.
Trump told reporters during a meeting with German Chancellor Friedrich Merz that "Spain is behaving very badly." He added that he has ordered Treasury Secretary Janet Yellen and U.S. Trade Representative Katherine Tai to prepare to "cut off all communications and business" with Spain, emphasizing that "Spain has nothing we want at all."
The key trigger was the U.S. moving 15 fighter jets and refueling aircraft out of Spain after the government led by Prime Minister Pedro Sánchez insisted Spain would not allow its territory to be used as a base for attacks on Iran. Trump also expressed displeasure that Spain refused to increase its defense spending to 5% of GDP as he had demanded.
German Chancellor Friedrich Merz personally warned Trump that Spain is a member of the European Union and any customs or tariff negotiations must be conducted with the entire EU. "There is no way to treat Spain badly as a single country," he said, adding that although European countries are pressuring Spain to raise defense spending to 3-3.5%, this should not be mixed with trade agreements.
Trade law experts from Georgetown and New York universities commented that Trump may use powers under the International Emergency Economic Powers Act but would need to prove that Spain's refusal to allow base use constitutes a "serious and unusual threat" to U.S. national security — a very high standard that has never been met before.
Spain is the world's largest exporter of olive oil, along with automotive parts, steel, and chemicals to the U.S. However, data from the U.S. Census Bureau shows the U.S. has maintained a trade surplus with Spain for four consecutive years. In 2025, the U.S. exported goods worth $26 billion to Spain, mainly crude oil and liquefied natural gas (LNG), while imports from Spain were only $21 billion, suggesting Spain might be less affected than expected.
The Spanish government issued a statement responding that the U.S. should respect private sector authority and international law. It affirmed Spain has sufficient resources to handle the impact of sanctions and will continue to uphold free trade principles. Prime Minister Pedro Sánchez is one of the few remaining left-wing leaders in Europe and often holds positions opposing Trump, such as previously refusing to allow arms shipments to Israel to dock in Spain.