"Spain is very bad", the US president told reporters during a meeting with German Chancellor Friedrich Merz on 3/3. He stated that he had instructed US Secretary of the Treasury Scott Bessent to "cut off all transactions" with the country.

"We are going to cut off trade relations with Spain. We don't want anything to do with them anymore", Trump said.

The US relocated 15 aircraft from the Rota and Moron military bases in southern Spain after the Spanish government announced it would not permit the US to use its military facilities for attacks on Iran. "I have the right to block all business with Spain. We can impose sanctions", he declared.

US President Donald Trump delivering the State of the Union address on 24/2. Photo: AFP

Trump also publicly consulted Bessent and US Trade Representative Jamieson Greer on the matter. "Sir, we will discuss this. We know you can use that tool, and will do so if needed to ensure national security and economic interests", Greer responded.

Bessent affirmed that the US Supreme Court confirmed Trump's authority to impose sanctions under the International Emergency Economic Powers Act (IEEPA). The Office of the US Trade Representative and the Department of Commerce are also exploring methods to sanction Spain under other trade laws.

Trade law researchers indicate that IEEPA allows a president to impose trade embargoes. To do so, the president must declare a national emergency, designating Spain as an "unusual and extraordinary" threat to the United States.

"However, it is difficult to prove that Spain's refusal to allow the use of air bases on its territory to attack Iran creates an 'unusual and extraordinary threat' to US national security or foreign policy", noted Peter Shane, a law professor at New York University.

The Spanish government subsequently urged the US to respect the autonomy of private businesses, international law, and its bilateral trade agreement with the European Union. Madrid stated it possesses sufficient resources to limit the impact of a trade embargo and support affected sectors. Nevertheless, it affirmed its commitment to promoting free trade and economic cooperation.

Spain is the world's largest exporter of olive oil. It also sells oto parts, steel, and chemicals to the US. Compared to many other European nations, Spain is less vulnerable to Trump's threats of economic sanctions.

Last year, the US recorded its 4th consecutive year of trade surplus with Spain, totaling 4,8 billion USD. According to US Census Bureau data, US exports to the European country reached 26,1 billion USD, while imports were 21,3 billion USD. Exports of crude oil and liquefied natural gas to Spain have also accelerated in recent years.

Ha Thu (according to Reuters)