Spain responds after Donald Trump threatens trade cutoff: 'treating it as business as usual'
Spain's Prime Minister Sánchez's Office downplayed Trump's trade threats, emphasising strong bilateral relations in trade and defence. Amid NATO tensions, Spain rejects increased military spending demands and maintains its commitment to social and economic ties with the US.
Responding to US President Donald Trump's threat to cut off trade, Spain's Prime Minister Pedro Sánchez's Office said it was treating the remarks as ‘business as usual’.
“Our country enjoys excellent social, cultural, and economic relations with the US, and it is not our intention for that to change,” the prime minister’s office said in an official statement.
Earlier, a spokesperson for the Spanish government issued a similar statement, saying that the country “is responding to these remarks calmly and as a matter of course.” The spokesperson stressed that the two countries have an “excellent” relationship, noting the US runs a trade surplus with Spain.
Quick answers to key questions
Donald Trump threatened to cut off trade ties with Spain, labeling the country a 'terrible partner' in NATO and expressing his desire to halt all trade with Spain.
Spain's Prime Minister Pedro Sánchez stated that the country is treating Trump's remarks as 'business as usual' and emphasized Spain's excellent economic, social, and cultural relations with the US.
Trump's trade threat followed Spanish Prime Minister Sánchez's refusal to allow the US access to military bases for a campaign against Iran, which led to escalating tensions between the US and Spain.
Spain believes its relationship with the US is secure because economic ties are established by private companies rather than governments, and the US has a trade surplus with Spain.
This threat was not the first instance; Trump had previously directed his officials to cut off trade with Spain back in March, highlighting ongoing tensions over defense spending and military cooperation.
“Economic ties are built by private companies, not by governments,” the spokesperson added.
What did Trump say at NATO?
Speaking at a summit of NATO leaders in Ankara, Trump said he had ordered his Treasury Secretary Scott Bessent to cut off trade ties with Spain, calling Madrid a "terrible partner" in NATO.
"Spain is a wasted cause. We don't want to do any trade business with Spain anymore," Trump said. “By the way, I'd like to cut it off. Spain is a terrible partner in NATO. They don't participate, they don't pay. I don't want anything to do with Spain. Cut off all trade with Spain, including visits.”
The US vs Spain trade war
This is not the first time Trump has threatened to cut off economic ties with Spain. Back in March, he said he had directed Bessent to “cut off all trade with Spain.”
That came after Spanish Prime Minister Sánchez denied access to his country’s military bases for the US bombing campaign against Iran. Unlike some European leaders who have tried to placate Trump, Sánchez has found that his standing at home has benefited from criticising Trump’s actions.
Spain also faced criticism at the 2025 NATO summit, when Sánchez was the only leader from the alliance’s 32 countries to refuse to commit to a defense spending target of 5% of GDP. Spain increased defense spending from 1.42% of GDP in 2024 to 2% in 2025 and does not plan to raise it beyond 2.1%, even as other allies push for higher military spending.
Trump has not explained how he could follow through on his threats against Spain, given that Spain’s a member of the European Union, which oversees foreign trade for the entire bloc.
About the Author
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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