Pedro Sánchez Rejects Trump Trade Threat, Says ‘No to War’ as EU Backs Spain

Spain’s Prime Minister Pedro Sánchez has delivered a forceful response to US President Donald Trump’s threat to sever trade ties, declaring that Spain stands for peace, international law and multilateralism, not escalation.

In a 10-minute televised address from the prime minister’s official residence in Madrid, Sánchez reflected on the wars in Ukraine, Gaza, and the 2003 Iraq War, arguing that history had shown the devastating consequences of military interventions that sidestep international legality. “Our position can be summed up in three words: no to war,” Sánchez said, warning that “you cannot answer one illegality with another,” because that path leads to wider global catastrophe.

Tensions escalated after President Trump threatened to impose a full trade embargo on Spain following Madrid’s refusal to allow the United States to use the jointly operated military bases at Morón and Rota for potential strikes against Iran. “Spain has been terrible,” Trump said during a meeting with German Chancellor Friedrich Merz. “We’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”

Spain hosts key US military installations under long-standing bilateral defence agreements, and access to these bases has historically required coordination and political consent from Madrid. Spanish officials maintain that any offensive military use of the facilities must align with Spain’s foreign policy stance and international law obligations.

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The threat triggered swift reactions across Europe. The Élysée Palace confirmed that French President Emmanuel Macron expressed solidarity with Spain during a call with Sánchez, while European Council President António Costa conveyed the European Union’s full backing. German Chancellor Merz clarified that the United States could not negotiate selective trade arrangements with individual EU member states, underscoring that trade policy falls under EU competence rather than national authority.

Spain’s Economy Ministry signaled it was assessing contingency measures in case of economic retaliation, although Sánchez avoided directly repeating Trump’s trade embargo language during his address. He stressed that the government was studying ways to shield Spanish businesses and households from potential fallout.

Trump also criticized Spain for failing to meet NATO’s proposed 5% of GDP defence spending target, calling the country a “terrible partner” in the alliance. Spain currently spends significantly less than that benchmark, though it has pledged gradual increases in line with NATO commitments. Earlier this year, Sánchez had drawn criticism from Washington for opposing a US military incursion into Venezuela, reinforcing perceptions of policy divergence between Madrid and Washington.

Despite tensions, Sánchez reiterated Spain’s solidarity with nations “illegally attacked by the Iranian regime,” while maintaining that military escalation was not the solution.

Sánchez invoked Spain’s experience during the 2003 Iraq invasion, recalling the meeting of the so-called “Azores trio” — then-US President George W. Bush, UK Prime Minister Tony Blair, and Spain’s then conservative leader José María Aznar — shortly before the invasion. He argued that the Iraq War left Europe with “a more insecure world and worse life,” suggesting that strikes on Iran could similarly destabilize global markets and harm ordinary citizens through rising energy prices and economic uncertainty.

The Iraq reference resonates strongly in Spain, where mass anti-war protests preceded the 2004 general election. Many analysts believe public anger over the war contributed to the Socialist Party’s surprise electoral victory days after the Madrid train bombings.

Sánchez’s stance aligns with Spain’s broader foreign policy posture on the Middle East. His government has been one of Europe’s most outspoken critics of Israel’s military campaign in Gaza following the 2023 Hamas attacks. Spain described Israel’s actions as genocide and moved to recognize a Palestinian state earlier than many EU counterparts, a position that has support among Sánchez’s left-wing coalition partners and segments of Spanish public opinion.

The transatlantic clash comes at a delicate moment for Sánchez’s coalition government, which has faced mounting political pressure and corruption allegations involving allies. His parliamentary majority depends on a complex alliance of left-wing and regional nationalist parties.

However, confronting Trump could carry electoral advantages. A recent survey by Spain’s CIS research institute found that 77% of Spaniards hold a bad or very bad opinion of Trump, suggesting broad domestic backing for Sánchez’s defiance.

Uncertainty remains over whether Trump’s rhetoric will translate into concrete economic measures. Spain exports billions of euros in goods to the United States annually, including automobiles, pharmaceuticals, olive oil, and industrial machinery. A full trade embargo would significantly disrupt bilateral commerce and ripple across EU markets.

For now, Spain is emphasizing diplomacy, European unity, and adherence to international law, while businesses and citizens await clarity on whether the standoff will escalate into tangible economic consequences.

Pedro Sánchez Rejects Trump Trade Threat, Says ‘No to War’ as EU Backs Spain