Can Trump cut trade with Spain? The limits of his threat
The US president has again threatened to sever trade ties with his Iberian partners, whose exports to the United States make up under 5% of their trade balance. Can Trump go further than tariffs?
"We no longer want to do any kind of business with Spain. I would like that to stop. Spain is a terrible partner in NATO. They don't pull their weight, they don't pay. I don't want anything to do with Spain. Cut off all trade with Spain, please, including visits," Donald Trump declared at a joint press conference after the NATO meeting in Ankara on Wednesday.
The US president's remarks stand in stark contrast to the way the European Union's trade policy works. Since the creation of the single market in 1993, tariffs, trade agreements and other measures in this area have been an exclusive EU competence, exercised through the European Commission.
Any measure targeting one of the 27 member states would have repercussions for the single market as a whole and could trigger a coordinated response from Brussels.
Trade flows between two of these countries are not even considered exports, but rather "intra-EU supplies". This interconnectedness also means that oranges grown in Valencia can be processed in another European country before being shipped to the US, so a unilateral move against Spain would create major practical and legal difficulties.
"The US federal government knows how the EU's trade relations are managed and is not interested in breaking off trade ties," replied Teresa Ribera, the EU competition chief and former minister in Pedro Sánchez's government, last March, when asked about the issue after Trump once again threatened Spain.
How much leeway Trump has to follow through on his threat
The figures show an asymmetric trade relationship. According to 2025 data, only 4.9% of Spain's goods exports go to the United States, worth around 18 billion euros, a share that makes it less dependent than countries such as Italy (10.7%) or Germany (9.9%).
By contrast, US exports to Spain amount to around 23 billion euros, meaning that, technically, the American giant runs a trade surplus on this route. That said, exports to Spain account for only about 1.2% of total US exports.
Some sectors are more exposed than others. Capital goods and semi-finished products, such as industrial machinery and chemicals, make up more than half of Spanish exports to the US, while food products account for around 18%.
Within these sectors, exports of engines and construction materials are among the Spanish goods most in demand in the US. As for foodstuffs, oils and fats, including olive oil, represent around 14% of Spanish exports crossing the Atlantic.
As far as tariffs are concerned, Section 122 of the International Emergency Economic Powers Act places limits on Trump's presidential powers: a cap of 15% and a maximum duration of 150 days for any tariff measure, after which he would need Congress's approval to extend it. Sections 232 and 301 require prior formal investigations, lengthening the process.
Other potentially applicable unilateral measures
Beyond trade policy, Trump could still impose individual sanctions on legal entities or individuals through his Department of Commerce's Bureau of Industry and Security or the Treasury Department, as happened to UN rapporteur Francesca Albanese, without going through congressional oversight. This can involve restrictions on diplomacy, banking services or travel, affecting both public and private entities.
The Department of Commerce could also restrict the sale of US technology (semiconductors, software, defence components) to specific Spanish companies through the so-called 'Entity List'. There have historically been occasional entries from EU countries but on national security grounds, such as shell companies linked to Russia or Iran. The vast majority of sanctions currently target China.
Spain nevertheless enjoys a privileged status under the US Export Administration Regulations (EAR). It belongs to group A:5, along with Germany, France, Italy, the United Kingdom, Japan and South Korea, the category that benefits from the most favourable export-licensing regime.
