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How can Trump 'cut off all trade' with Spain?
Trump’s move follows Spain’s refusal to raise defense spending to 5% of GDP, while U.S. officials review legal options for tariffs or a broader embargo.
On Wednesday, President Trump reiterated his desire to impose a trade embargo on Spain, ordering Treasury Secretary Scott Bessent to "cut off all trade& including visits" with the country amid tensions over defence spending.
Tensions escalated after Trump threatened punishment in October 2025, claiming Spain refused at a NATO summit in The Hague to commit to raising defence spending to 5% of national output.
Under the International Emergency Economic Powers Act, the president can only restrict trade if Spain presents an "unusual or extraordinary threat" to U.S. national security, complicating the $26.6 billion trade relationship.
Peter Shane, a U.S. law professor at NYU, said it was "hard to see" how the dispute over defence spending would qualify as justification for invoking emergency powers.
European Union rules require that all trade negotiations must be conducted with the bloc as a single entity, potentially complicating any U.S. attempt to single out Spain individually.
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Who is in Control?
Letters from an American discuss Trump’s NATO-summit call to Treasury Secretary Scott Bessent to ‘cut off all trade’ with Spain and the legal limits on such a move