Greer says Trump could use emergency powers to halt Spain trade
The U.S. trade representative said IEEPA could support a trade cutoff, though he suggested no action against Spain was imminent after talks with Madrid.
By Marcus V. Thorne · Markets Editor
· 3 min read
U.S. Trade Representative Jamieson Greer said President Donald Trump has authority under the International Emergency Economic Powers Act to halt trade with Spain, putting a legal tool used for sanctions back into focus after a dispute over NATO spending. A cutoff, if pursued, would affect a bilateral trade channel that includes Spanish shipments of refined petroleum, pharmaceuticals and electrical transformers to the U.S., according to the Observatory of Economic Complexity.
Greer told reporters at the White House on Thursday that Trump could single out Spain even though it is part of the European Union. He said the same statute, known as IEEPA, remains available for certain restrictions on commerce despite the Supreme Court’s February ruling against Trump’s earlier country-by-country tariff program.
IEEPA allows a president to impose economic restrictions after declaring a national emergency. Greer said the law has been used for decades and currently supports limits on trade with countries including North Korea. He said the Supreme Court rejected its use as a basis for Trump’s reciprocal tariffs, while noting that the statute permits prohibitions on trade and other measures.
Greer said Trump “for sure can” use the law to block trade, according to CNBC, though he also indicated that the president may not be preparing to do so. He cited a recent meeting between Trump and Spanish Prime Minister Pedro Sánchez that he described as positive and focused on payment issues.
“I don’t think there’s anything imminent on that,” Greer said when asked about a possible halt in trade with Spain, according to CNBC.
NATO spending dispute
The comments followed Trump’s remarks a day earlier at a NATO summit in Ankara, Turkey, where he criticized Spain over its resistance to higher defense spending targets. Sitting alongside NATO Secretary-General Mark Rutte, Trump said Spain was a “terrible partner in NATO” and said he wanted no dealings with the country, according to CNBC.
Trump has pressed NATO members to lift defense spending to 5% of gross domestic product, arguing that alliance costs should be shared more evenly. Most NATO members have agreed to increase their spending targets, while Spain has rejected the proposal as “unreasonable,” the Associated Press reported.
Trump later softened his public comments after leaving Turkey. Speaking to reporters aboard Air Force One, he said he still had issues with Spain but that the country had been “very generous” that day. Asked what had changed, Trump said Spain had “honored a request for lots of payments,” according to CNBC.
The details of any Spanish commitment were unclear. CNBC reported that Spain’s U.S. embassy did not immediately respond to its request for comment on the remarks from Trump and Greer.
Legal route and trade implications
The distinction between tariffs and prohibitions is central to Greer’s explanation of the administration’s options. Tariffs impose a tax on imports, while a prohibition can bar transactions or categories of trade under emergency powers. Greer argued that the Supreme Court’s decision left room for the latter use of IEEPA.
The comments also mark the latest friction this year between Trump and Sánchez. In March, after the U.S. began its war against Iran, Sánchez criticized the strikes, and Trump threatened to cut off trade with Spain, CNBC reported.
Greer said he had been in contact with Treasury Secretary Scott Bessent, who traveled with Trump to Turkey. Asked whether Trump had dropped the idea of separating U.S. trade ties from Spain after the Sánchez meeting, Greer declined to speak for the president, saying the discussion appeared to have been constructive.
This story draws on original reporting from CNBC.
