Spain defies Trump's trade threat over Iran bases

Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Spain's government rejected Trump's threat to cut off all trade, saying it "has the necessary resources to contain the possible impact" of a US embargo and that Washington must comply with international law and bilateral EU-US trade agreements.
- Foreign Minister Jose Manuel Albares declared that Spanish military bases—jointly operated with the US but under Spanish sovereignty—will not be used for operations outside the bilateral agreement or the UN Charter, including attacks on Iran.
- The US military relocated 15 aircraft, including refuelling tankers, from the Rota and Moron bases in southern Spain after Madrid's refusal, operationalizing the base shutdown before Trump publicly responded.
- Trump told reporters in the Oval Office that "Spain has been terrible" and said he had instructed Treasury Secretary Scott Bessent to "cut off all dealings" with Spain.
- Spain's economic exposure is limited: the US ran a $4.8bn trade surplus with Spain in 2025 (US exports of $26.1bn against $21.3bn in imports), making Madrid less vulnerable than other European nations to tariff pressure.
- Prime Minister Pedro Sanchez condemned the US-Israel strikes on Iran as a breach of international law, arguing that "one can oppose a hateful regime and, at the same time, oppose an unjustified and dangerous military intervention."
Why it matters: This standoff tests the limits of Trump's economic coercion against a NATO ally that holds strategic basing leverage. Spain's relative insulation (the US, not Spain, ran the $4.8bn trade surplus in 2025) and its grounding in international law and the UN Charter give Madrid a stronger defensive position than most European partners facing similar US pressure.




