Finance
Spain-US relations 'normal' despite trump's trade threats, spanish minister says
Published by Global Banking & Finance Review®
Posted on March 10, 2026
3 min readLast updated: March 10, 2026
Quick Summary
Spain’s foreign minister says Spain–U.S. relations remain “operating normally,” despite President Trump’s March 3 threats of a full trade embargo and demands over NATO defense spending and military base access.
Spain-US Relations Remain Stable Despite Trade Threats from Trump
Current State and Challenges in Spain-US Diplomatic Relations
Normal Operations Amid Political Tensions
MADRID, March 10 (Reuters) - Relations between Spain and the United States are "operating normally" despite U.S. President Donald Trump's threats to cut trade with Madrid over its opposition to the U.S.-Israeli war on Iran, the Spanish foreign minister said on Tuesday.
The leftist government of Prime Minister Pedro Sanchez drew Trump's ire last week after rejecting the war as reckless and illegal while banning U.S. aircraft from using jointly operated bases in southern Spain in the offensive against Tehran.
Diplomatic Communications
Foreign Minister Jose Manuel Albares told reporters both Spain's embassy in Washington and the U.S. embassy in Madrid were operating with "absolute normalcy".
"Our embassy in Washington is operating normally and has all the contacts it should have as usual," he said, adding that the same applied to the U.S. embassy in Madrid.
Trade and Defense Disputes
Trump's Trade Embargo Threats
Trump threatened on March 3 to impose a full trade embargo on Madrid, also citing the latter's refusal to meet NATO's new defence spending target of 5% of national output.
Spain later defied those threats, with its deputy premier saying they refused to be "vassals".
US Military Bases in Spain
Calls for Relocation
On Monday, U.S. Senator Lindsey Graham of South Carolina - a close Trump ally - told Fox News Spain had "lost its way" and called for the U.S. to move its air bases from Spain "into a country that'll let us use them".
Official Response
Asked about Graham's remarks, Albares said there had not been any contact with the U.S. about the bases in Rota and Moron de la Frontera, which are key logistical hubs used by NATO forces for air-to-air refueling and intercontinental transit.
Spain's Position on Middle East Conflicts
Stance on Lebanon and Humanitarian Aid
Albares also said a potential Israeli ground invasion of Lebanon would be a "tremendous" mistake, while also demanding that the Iran-backed Shia militia Hezbollah stop its rocket launches towards Israel.
He added that Spain would send humanitarian aid worth 9 million euros ($10.5 million) to Lebanon, where at least 500 people have been killed and 700,000 forcibly displaced from their homes, according to Beirut and UNICEF.
($1 = 0.8601 euros)
(Reporting by Victoria Waldersee and Paolo Laudani; Writing by David Latona; Editing by Emma Pinedo and Gareth Jones)
Key Takeaways
- •Spanish Foreign Minister José Manuel Albares affirmed that diplomatic channels—including both embassies—are functioning normally, despite U.S. tension over Spain’s refusal to allow use of its bases for operations against Iran and its lower NATO spending stance.
- •President Trump threatened on March 3 to cut off all trade with Spain and cited both Spain’s opposition to U.S./Israeli war actions in Iran and its refusal to meet NATO’s 5% GDP defense spending target. However, Spain held firm, with officials rejecting the threats and emphasizing respect for international law and EU trade frameworks.
- •Spain’s business groups and central bank data underline that the U.S. accounts for about 4.4% of GDP in bilateral trade, with key exports including olive oil, pharmaceuticals, and auto components—highlighting that while the threat is serious, Spain is relatively insulated and well-positioned to protect its economic interests.
Frequently Asked Questions about Spain-US relations 'normal' despite Trump's trade threats, Spanish minister says
1Are Spain-US relations affected by Trump's trade threats?
Spain's foreign minister stated that relations with the US are operating normally, despite trade threats from President Trump.
2Why did Trump threaten to cut trade with Spain?
Trump threatened a trade embargo over Spain's opposition to the US-Israeli war on Iran and refusal to meet NATO's new defence spending target.
3What was Spain's response to the US trade threats?
Spanish officials defied the threats, saying they refused to be 'vassals' and maintained normal diplomatic operations.
4Are US air bases in Spain impacted by recent tensions?
There has been no contact with the US about changing the status of air bases in Rota and Moron de la Frontera, according to Spain's foreign minister.
5What humanitarian actions is Spain taking in the region?
Spain is sending €9 million in humanitarian aid to Lebanon following displacement from regional conflicts.
