President Donald Trump announced Tuesday that the United States will terminate all trade with Spain, delivering a sweeping economic blow to the NATO ally after Madrid barred American forces from using jointly operated military bases during Operation Epic Fury, the U.S. and Israeli campaign targeting Iran.
Trump made the announcement during an Oval Office meeting with German Chancellor Friedrich Merz, addressing reporters directly on the matter.
“Spain has been terrible,” Trump said. He directed Treasury Secretary Scott Bessent to take immediate action, stating: “I told Scott [Bessent] to cut off all dealings with Spain.”
Trump cited multiple grievances against Spain in his remarks, connecting the base dispute to a longer pattern of disagreements with Madrid, including Spain’s refusal to commit to increased NATO defense spending targets.
“First of all, it started when every European nation, at my request, paid 5% which they should be doing,” Trump told reporters.
“And everybody was enthusiastic, Germany, everybody. But Spain didn’t do it and now Spain actually said that we can’t use their bases.”
Trump pressed his case further, arguing the United States holds the stronger position in any economic standoff with Spain.
“Spain has absolutely nothing that we need, other than great people,” he said. “They have great people, but they don’t have great leadership.”
Trump concluded by reiterating his stance in blunt terms: “We’re gonna cut off all trade with Spain. We don’t want anything to do with Spain.”
Bessent, present during the Oval Office exchange, backed the president’s authority to act.
“I agree that the Supreme Court reaffirmed your ability to implement an embargo,” Bessent told Trump.
Bessent added that the U.S. Trade Representative and Commerce Department would “begin investigations and we’ll move forward with those.”
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The two U.S. military installations at the center of the dispute—Rota and Morón—have operated under bilateral defense agreements between the U.S. and Spain since the 1950s.
The U.S. relocated 15 aircraft, including refueling tankers, from those southern Spain bases after Madrid refused to permit their use in Iran-related operations.
Spanish Defense Minister Margarita Robles stated during a Monday press conference that the U.S. and Israel had violated an agreement requiring them to “comply with international legal frameworks.”
Spanish Foreign Minister José Manuel Albares said Spain would not allow its military bases to be used because the offensive fell outside the scope of its agreement with the United States and was not in accordance with the United Nations Charter.
Spain’s socialist Prime Minister Pedro Sánchez condemned the U.S. and Israeli strikes on Iran, calling for an “immediate de-escalation and full respect for international law.” Sánchez has described the military intervention as “unjustifiable” and “dangerous.”
A spokesperson from Sánchez’s office defended Spain’s broader military record, stating the country is “a key member of NATO, fulfilling its commitments and making a significant contribution to the defense of European territory.”
The trade relationship at stake carries significant weight.
The U.S. Census Bureau reports the United States currently holds a trade surplus with Spain. In 2025, the U.S. exported approximately $26 billion worth of goods to Spain.
In December 2025 alone, U.S. exports to Spain totaled $1.75 billion while imports from Spain reached $1.8 billion, according to OEC World.
