US President Donald Trump on Tuesday threatened to cut trade with Spain over tensions over the Iran conflict and NATO spending.
The threat came after Spain was seen as not supporting US and Israeli attacks on Iran and rejecting increased defense commitments under NATO. The statement was made during Trump’s meeting with German Chancellor Friedrich Merz in the Oval Office.
The development came a day after Spanish Foreign Minister José Manuel Albares stressed that Madrid would not allow the US to use a jointly operated military base in southern Spain for any military operation not covered by the United Nations Charter.
Albares also clarified that the base in the country was not used in the weekend attack on Iran.
Trump, however, said that the US has the ability to use the base if necessary, although Spain has not publicly supported it.
From a trade perspective, it is still unclear how Washington could carry out its threat to cut trade with Spain, given that the country is a member of the European Union.
Any trade negotiations involving Spain are subject to agreements negotiated by the European Union on behalf of its 27 member states.
The office of Spanish Prime Minister Pedro Sánchez has stressed that any revision of the trade deal must respect the autonomy of private companies, international law and bilateral agreements between the European Union and the United States.
The development has the potential to increase diplomatic tensions between Washington and its European allies, adding an element of uncertainty to global market sentiment that is already weighed down by geopolitical risks and energy inflation.
