US President Donald Trump orders halt to all trade with Spain due to Madrid’s refusal to cooperate on Iran strikes and lack of cooperation on NATO defense spending.

US President Donald Trump has threatened to cut off all trade with Spain after the country refused to let the US military use its bases for missions linked to strikes on Iran. Trump cited Spain's lack of cooperation on NATO defense spending, saying they haven't met the 5% GDP target. "Spain has been terrible," Trump said, adding he's told Treasury Secretary Scott Bessent to "cut off all dealings" with Spain. 

Spain's Prime Minister Pedro Sanchez responded, saying "no to war" and emphasizing their commitment to international law. The Spanish government warned the US to respect private businesses, international law, and bilateral trade agreements.

The US had a $4.8 billion trade surplus with Spain in 2025. Spain's economy might not be heavily impacted, being a top exporter of olive oil, auto parts, steel, and chemicals to the US.

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