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Can the U.S. Cut All Trade with Spain?

Spanish stocks fell 2.7% as investors weighed legal doubts and inflation risks from a possible U.S. trade cutoff, analysts said.

Summary by CNBC
President Trump says Spain has been "very generous" at the NATO summit - just hours after he demanded that Washington cut all trade ties with Madrid. But how much of an impact would such a drastic move have?

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Lean Right

The NATO summit starts with a serious diplomatic crisis over Trump's threats to impose tariffs on Sánchez's breaches.

The relations between the United States and Spain , complicated since Donald Trump’s return to the White House, experienced a new moment of tension on Wednesday during the NATO summit. The US president threatened to cut off “all trade” with the European country, which he criticizes for not spending enough in his judgment on Defense. “Spain is a lost cause. We don’t want any more trade deal with Spain,” Trump said, and branded the European countr…

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Libertad Digital broke the news on Thursday, July 9, 2026.
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