Jens Asbjørn Bøgen
Trump loves to threaten other countries with economic consequences, but this time, he risks shooting himself in the foot.
During a meeting with the press alongside German Chancellor Friedrich Merz, Donald Trump Tuesday told reporters, that the US was going to cut off all trading with Spain.
“We don’t want anything to do with Spain,” he said according to AP.
The reason for the POTUS’s remarks was that Spain has refused to allow the US to use military bases in Southern Spain in the ongoing operation in Iran.
The bases in Southern Spain are jointly operated by the US and Spain.
It is nothing new that Trump threatens other countries with economical consequences, but this time, he might have bit off more, than he can chew.
Because if he really is going to start a trade war with Spain, he would suddenly face the entire European Union.
Trade deals for all members
Spain is part of the EU, meaning the Union negotiates trade deals on behalf the south European nation along with the 26 other members of the Union.
EU and the US struck a trade deal last year, but if Trump puts action behind his words, it would mean that the entire trade deal could be at risk – a deal that imposes a 15% tariff on most European exports to the US.
On February 23 2026, EU lawmakers postponed a vote on the US trade deal following a fresh Trump imposition of a new blanket 15% import tariff following the US Supreme Court ruling against his use of tariffs Reuters reported at the time.
Much is still unclear regarding the potential trade dispute between Spain and the US, but Trumps actions could end up hurting US economy more, than he might imagines.
The economic bazooka
The EU has a Anti-Coercion Instrument (ACI), often referred to as an economic “bazooka”.
It was introduced in 2023 and is a framework for negotiation in situations, where a third country is trying to pressure a member of the EU or the Union itself to making a particular choice.
The ACI allows the Union to activate a number of countermeasures against the third party, including tariffs, limiting access to EU public precurement, restrictions on services and denying US companies to use their patents in the EU.
Effectively, this would mean that the US would not only face Spain in a trade war – it would face all 27 members of the European Union
In January 2026, French President, Emmanuel Macron, urged the EU to consider using the ACi against the US because of Trump-imposed tariffs on some EU-members amid the Greenland crisis.
Note that the use of the ACI has not yet been mentioned during the current Spain-US dispute.
White House backtracking?
White House Press Secretary Karoline Levitt said Wednesday at a press briefing, that Madrid had heard President Donald Trump’s warning “loud and clear” and was now coordinating with Washington.
The claim came less than a day after Trump threatened to suspend trade ties with Spain if it continued blocking the use of U.S. military bases on Spanish territory for strikes against Iran.
But Spain’s foreign minister strongly disputed the statement.
“I categorically deny this,” Spain’s Foreign Minister, José Luis Albares, said during an interview with Spain’s Cadena Ser radio network said.
Sources: EU Commission, AP News, White House Statements
