The US President Donald Trump threatened anew to impose a trade embargo on Spain, instructing Treasury Secretary Scott Bessent to "cut all trade. including visits" with the country, due to the tension that has been caused surrounding defense spending.
This move comes during a period of increasing pressure from the White House toward European allies to increase their military spending, with Donald Trump having repeatedly stated that the US cannot continue to shoulder the greatest burden of collective defense.
Can he, however, put his threat into action?
White House powers and legal obstacles
The US president possesses significant authorities based on the International Emergency Economic Powers Act (IEEPA), which allows the restriction of economic transactions with foreign countries.
However, to activate these powers, he will have to prove that the specific country constitutes an "unusual or extraordinary threat" to American interests and declare a state of national emergency.
Legal experts estimate that it would be particularly difficult to substantiate such a justification against Spain, based on today's disagreements.
At the same time, the regulations of the European Union require trade negotiations to be carried out at the level of the European bloc and not separately with each member state.
Invoking such a threat against Spain, a traditional ally of the US, a member of NATO and the European Union, would constitute an extremely difficult legal case.
From Iran and Syria to Spain, an unprecedented scenario
As Reuters explains, the IEEPA law has been used in the past against countries like Iran and Syria, while the Trading with the Enemy Act law has also been utilized for restrictions on trade, although its application concerns primarily periods of war.
If a full embargo proves legally unfeasible, Donald Trump possesses other options, such as the imposition of tariffs or trade sanctions. Article 232 of the Trade Expansion Act allows the imposition of tariffs on products that are considered a threat to the national security of the US, while Article 301 of the Trade Act gives the possibility of imposing sanctions for unfair trade practices.
A characteristic precedent from Trump's first presidential term was the imposition of a 30% tariff on Spanish black olives, due to claims by Washington that Spanish producers were benefiting from unfair subsidies.
The EU does not allow a bilateral US, Spain trade war
Another significant obstacle is the structure itself of the European Union.
Trade policy constitutes an exclusive competence of the EU, a fact which means that the US cannot easily impose trade restrictions on an individual member state without causing a broader confrontation with Brussels.
A move against Spain could be considered an attack against the entire European trade policy and lead to countermeasures by the European Commission.
The EU has already proven that it is willing to respond to American tariffs. During the previous trade dispute with Trump, Brussels imposed countermeasures on American products, from agricultural goods to industrial products.
Previous threats against Spain
Donald Trump has threatened trade actions against Spain in the past as well. The first threat was formulated in October 2025, while in March further moves were announced for the investigation of a potential embargo on Spanish products.
To date, however, no official investigation or procedure has been made public confirming the commencement of such a move.
US, Spain economic ties
Trade between the US and Spain is particularly important.
In 2025, the United States exported products valued at 26.6 billion dollars to Spain, while imports from the Spanish market amounted to 21.35 billion dollars.
Spain constitutes one of the largest foreign investors in the US, with Spanish companies employing approximately 200.000 workers in the country.
At the same time, Madrid is significantly increasing its defense spending. Projections for 2026 speak of 35.41 billion euros, an amount that corresponds to the NATO recommendations for the military spending of member states.
Spain also participates actively in NATO missions, with nearly 3,000 military personnel deployed in international operations, while it provides significant support to Ukraine.
A crisis that could cross Spain, US borders
A real trade rift between Washington and Madrid would constitute a test not only for bilateral relations but also for the cohesion of the Western Alliance.
Spain has been a member of NATO since 1982, of the European Union since 1986, and is considered a strategic partner of the US in the Mediterranean.
The threat of a trade blockade, even if it ultimately remains at the level of political pressure, signals the new, more aggressive approach of the Trump administration toward its allies, where trade relations are used as leverage for issues of defense and geopolitical influence.
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