Nobel laureate economist Paul Krugman has described Donald Trump's threat to sever all trade with Spain as "completely crazy" and unlikely to be implemented.
During a NATO summit in Ankara, Turkey, Trump reportedly called Spain a "wasted cause" and a "terrible partner in NATO." His grievances included Spain's refusal to increase its defense spending to 5% of its economic output and its decision not to permit the U.S. to use jointly operated air bases for a potential Iran conflict.
Krugman, a frequent critic of Trump's economic policies, acknowledged that presidents possess significant discretionary authority over tariffs and trade. However, he stated that a complete trade cutoff with Spain "would not fly even in the Trump administration."
Several factors make such a drastic measure improbable, according to Krugman. A primary obstacle is Spain's status as a member of the European Union. The U.S. typically engages in trade relations with the EU as a bloc rather than with individual member states. Furthermore, Krugman pointed out that the U.S. maintains a trade surplus with Spain, meaning American businesses would likely voice strong opposition to any measure that disrupts this economic relationship.