EU Rallies Around Spain After Trump Threatens Trade Embargo
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European leaders have moved quickly to support Spain after US President Donald Trump threatened to impose a trade embargo on the country, escalating tensions between Washington and the European Union.
The warning came after Spain refused to allow US warplanes to use its military bases for strikes against Iran. Spanish Prime Minister Pedro Sánchez defended the decision, describing the ongoing US-Israeli military campaign against Iran as illegal and maintaining Madrid’s position despite the threat of economic retaliation.
European leaders quickly expressed solidarity with Spain. French President Emmanuel Macron condemned what he called “economic coercion”, while António Costa emphasised that the EU would always protect the interests of its member states. German Chancellor Friedrich Merz also insisted that Spain would not be singled out on trade as long as it remained part of the EU’s single market.
The dispute marks the latest clash between the Trump administration and Europe. Only weeks earlier, tensions surged after Trump suggested annexing Greenland, a move that strained transatlantic relations and prompted European lawmakers to delay implementation of a previously agreed EU-US trade deal.
Despite the threat, analysts note that a full embargo on Spain would be difficult to enforce because of the EU’s integrated single market. Spain, the bloc’s fourth-largest economy, imports significant amounts of US liquefied natural gas and exports products such as olives, wine and cosmetics to the American market.
However, trade between the two countries represents only about 4% of Spain’s global exports, and Spain ran a €16 billion trade deficit with the United States in 2025. This suggests that a complete breakdown in trade relations could also carry economic costs for Washington.
EU officials have warned that the bloc stands ready to respond collectively if necessary to defend its economic interests.
