The White House says President Trump retains legal authority to cut off all trade with Spain, even after the Supreme Court struck down his sweeping tariff program earlier this year.
U.S. Trade Representative Jamieson Greer told reporters Thursday that Trump could use the International Emergency Economic Powers Act to single out Spain for a complete trade ban, despite the country’s membership in the European Union. The same law formed the basis for Trump’s “reciprocal” tariffs that the Supreme Court rejected in February.
How the Emergency Powers Law Works
IEEPA allows presidents to impose economic sanctions after declaring a national emergency. The law has been on the books for decades and currently authorizes trade restrictions against countries like North Korea.
Greer acknowledged the Supreme Court found IEEPA didn’t support Trump’s country-by-country tariff rates. But he argued the justices “highlighted that IEEPA clearly says you can prohibit trade, you can do certain things.”
The distinction matters for American companies doing business in Spain and Spanish goods flowing into U.S. stores. While tariffs tax imports, a complete trade prohibition would block them entirely.
What Triggered the Spain Threat
Trump’s demand to sever trade with Spain comes amid mounting tensions over NATO burden-sharing and defense spending commitments. Spain has lagged behind other European allies in meeting the alliance’s targets.
Whether Trump actually follows through remains unclear. Greer’s comments suggest the administration is laying legal groundwork while leaving room to back down. “The president may not follow through,” Greer said, but stressed the authority exists if Trump chooses to use it.
Impact on American Businesses
A full trade cutoff would hit U.S. companies with Spanish operations and disrupt supply chains for products ranging from olive oil to automotive parts. Spain ranks as America’s 30th-largest trading partner, with $21 billion in goods exchanged last year.
The threat also raises questions about how the administration might use emergency powers against other trading partners. If IEEPA can justify singling out an EU member state, it could theoretically apply to any country Trump deems a threat to national security or economic interests.
Key Points
- Trade representative says Trump can ban all commerce with Spain using emergency powers law
- Same legal authority behind tariffs the Supreme Court struck down in February
- Threat comes amid NATO dispute but administration hasn’t committed to following through
https://www.cnbc.com/2026/07/09/trump-spain-trade-greer-ieepa-tariffs-nato.html – July 09, 2026
