Trump Escalates Spain Trade Threat During Meeting with German Chancellor Merz

President Donald Trump has intensified his rhetoric against Spain, threatening a complete halt to trade relations over military base access restrictions. Speaking during an Oval Office meeting with German Chancellor Friedrich Merz, Trump explicitly stated, "We’re going to cut off all trade with Spain." The diplomatic rift stems from Madrid's decision to bar US forces from using Spanish territory to conduct military strikes against Iran. This escalation raises significant concerns regarding NATO unity and transatlantic economic cooperation. Financial markets are reacting to the heightened uncertainty, with the Euro EUR and Spain’s IBEX 35 index facing potential volatility. Investors are increasingly looking toward safe-haven assets like gold XAU/USD as geopolitical risks continue to mount. The direct nature of the threat underscores a potentially disruptive shift in US trade policy toward European allies.