US President Donald Trump has again threatened to sever trade ties with Spain, renewing criticism over the country’s defense spending within NATO and prompting fresh debate over whether Washington has the legal authority to target a single European Union member on trade.
Speaking after the NATO summit in Ankara on Wednesday, Trump said he wanted to end all business with Spain, accusing the country of failing to contribute enough to the military alliance.
“We no longer want to do any kind of business with Spain,” Trump said, adding that Spain was “a terrible partner in NATO” and calling for trade and even visits between the two countries to stop.
The remarks immediately highlighted the limits of US trade policy when dealing with the European Union. Under EU rules, trade policy is managed centrally by the European Commission rather than individual member states. Tariffs, trade agreements and commercial measures are negotiated on behalf of all 27 EU countries, making it difficult for Washington to single out Spain without affecting the wider European single market.
European officials have previously dismissed similar threats. Earlier this year, EU Competition Commissioner Teresa Ribera said the United States fully understands that trade relations with Europe are handled collectively and that breaking commercial ties with one member state would create legal and practical complications.
Trade data also suggest that the economic relationship is relatively modest compared with other European partners. Around 4.9 percent of Spain’s exports are shipped to the United States, representing approximately €18 billion in annual trade. The figure is lower than Germany and Italy, both of which send a larger share of their exports to the US market.
Meanwhile, American exports to Spain total roughly €23 billion, giving the United States a trade surplus in bilateral goods trade. Even so, exports to Spain account for only about 1.2 percent of total US exports.
Spanish products most exposed to potential restrictions include industrial machinery, chemicals, engines, construction materials and food products such as olive oil, which remains one of Spain’s leading agricultural exports to the American market.
Legal experts note that the US president’s authority to impose unilateral tariffs is not unlimited. Emergency tariff powers under Section 122 of US trade law generally cap duties at 15 percent for a maximum of 150 days unless Congress authorizes an extension. Other trade actions under Sections 232 and 301 require formal investigations before new measures can be introduced.
Although broader trade restrictions face legal and procedural hurdles, the US administration has other options. Federal agencies can impose sanctions on specific companies or individuals, restrict access to American technology or place businesses on export control lists if national security concerns are identified.
Spain, however, currently enjoys one of the most favorable export licensing classifications under US regulations. It belongs to the same preferred group as Germany, France, Italy, Japan, South Korea and the United Kingdom, allowing easier access to American technology exports.
Analysts say any attempt to isolate Spain economically would likely trigger a response from the European Union, given the bloc’s unified approach to trade policy and the close integration of supply chains across member states.
