USA04 March, 20262 min read
Spain Rejects President Donald Trump's Trade Threats, Denies U.S. Military Cooperation Against Iran
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Spain denied the White House claim that it agreed to cooperate militarily White House spokesperson Karoline Leavitt claimed Spain agreed to cooperate militarily
Spain-US diplomatic dispute
In a meeting with German Chancellor Friedrich Merz, President Donald Trump reportedly criticised Spain’s stance on recent Middle Eastern hostilities. He said he had asked to cut ties with Spain, called it a "terrible" partner and threatened a trade embargo.
“In a meeting with German Chancellor Friedrich Merz, Donald Trump said he had asked to cut ties with Spain, called it a ‘terrible’ partner and threatened a trade embargo—while acknowledging he could not impose tariffs unilaterally without affecting the whole EU.”
He acknowledged he could not impose tariffs unilaterally without affecting the whole EU. Spain’s pushback was widely reported and portrayed as a diplomatic confrontation between Madrid and Washington over Spain’s public opposition to US- and Israeli-led actions targeting Iran.
Spain's anti-war stance
Prime Minister Pedro Sánchez issued a public 'no to war,' invoking the 2003 Iraq invasion as a cautionary precedent and arguing that similar military interventions worsen terrorism, migration and economic crises.
Spain defended its refusal to become involved in another Middle Eastern conflict and reiterated its rejection of violations of international law, framing the stance as a matter of principle and caution.
Spain's response to criticism
Officials in Madrid further rejected the premise of Trump’s criticism. Foreign Minister José Manuel Albares said Spain’s wording hadn’t changed and denied knowing what Trump was referring to.
“Foreign Minister José Manuel Albares said Spain’s wording hadn’t changed and denied knowing what Trump was referring to.”
He said this signalled that the government viewed the claims as either a misunderstanding or an unfounded attack. Reporting emphasised Spain’s broader diplomatic posture, which combined vocal criticism of certain military actions with denials of any change in policy language.
Defence spending and unity
Spain has resisted a US-backed push for higher military spending, declining to raise defence spending from 2% to 5% of GDP. It stands as the only NATO country opposing that proposal, and commentators stressed that singling out one ally is unacceptable. European figures and analysts emphasised EU collective mechanisms on trade and the need for unity, underscoring the practical and political limits of a unilateral US penalty on a single member state.
International reactions and markets
Reactions beyond Spain and the US were mixed: Iran's president praised Spain for opposing what he called a 'Zionist-American' assault. The EU response was described as more measured, urging de-escalation and protecting civilians even as some EU figures voiced concerns about Iran and supported sanctions and diplomacy. Markets treated the episode as limited risk: Spain's Ibex 35 rose about 0.7% and the broader Stoxx 600 about 0.2%, reflecting investor calm amid diplomatic saber-rattling.
“Iran’s president praised Spain for opposing what he called a ‘Zionist‑American’ assault, while the EU response has been more measured—urging de‑escalation and protecting civilians even as EU foreign chief Kaja Kallas stressed concerns about Iran’s actions and supported sanctions and diplomacy.”