Trump Threatens Trade War with Spain Over NATO Spending and Base Access

President Donald Trump has threatened to cut off all trade with Spain following a dispute over NATO spending and Spain’s refusal to allow the United States to utilize its bases for potential military actions related to conflicts in the Middle East, specifically concerning Iran. The escalating tensions were revealed during a meeting with German Chancellor Friedrich Merz at the White House on Tuesday, March 3, 2026.

Dispute Over NATO Spending

Trump expressed his dissatisfaction with Spain’s adherence to NATO’s defense spending targets, stating, “We are trying to convince Spain to catch up.” He noted that Spain is the only NATO member unwilling to meet the suggested 5% of GDP allocation for defense. German Chancellor Friedrich Merz echoed this sentiment, emphasizing the importance of all NATO members complying with these financial commitments for collective security as reported by the New York Times.

Base Access and Iran

The immediate trigger for Trump’s threat was Spain’s decision to deny the U.S. Military access to Spanish bases for operations linked to potential strikes against Iran. Trump described Spain as a “terrible” ally and instructed Treasury Secretary Scott Bessent to “cut off all dealings” with the country according to the Associated Press. He asserted that the U.S. Could still utilize the bases if necessary, stating, “We can just fly in and use it. Nobody is going to tell us not to use it. They were unfriendly.”

Spanish Response and EU Concerns

The Spanish government responded by stating it has “the necessary resources to contain the possible impact of the trade embargo” and urged the U.S. To uphold its trade agreement with the European Union. The European Commission indicated it would ensure its interests are “fully protected” as reported by the AP.

Additional Criticism of Britain

During the same press conference, Trump also voiced his displeasure with Britain, though details regarding this dispute were less specific, relating to the use of the UK’s airbase on Diego Garcia for initial US strikes against Iran as detailed in the Mirror.

Key Takeaways

• President Trump threatened a full trade embargo with Spain.
• The dispute stems from Spain’s NATO spending and denial of base access for potential Iran-related military operations.
• Germany, through Chancellor Merz, supports the call for increased defense spending by all NATO members.
• Spain maintains it can mitigate the impact of a trade embargo and expects the U.S. To honor existing trade agreements.