Spain–U.S. Tensions: Limited Economic Exposure

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This episode examines the diplomatic friction between Spain and the United States after Spain refused to allow its military bases to be used for operations in Iran. Amid tariff threats from Donald Trump, we analyze why Spain’s economic exposure to the U.S. is relatively limited, with trade heavily oriented toward the European Union. We also discuss how EU-level control over trade policy constrains unilateral U.S. measures, and why Spain’s integration into the single market helps cushion the potential impact of escalating tensions.