Pedro Sánchez

The narrator states Trump issued a "threat to cut off trade" with Spain over their objections to the Iran war. Sánchez explicitly replies, "We will not be complicit... simply out of fear of retaliation." A direct threat of trade cessation from the US President against a specific Eurozone economy introduces severe macro risk. Spain's export economy would suffer disproportionately if the US enacts tariffs or embargoes, yet the market may not be pricing in a full diplomatic rupture. SHORT Spanish equities via the ETF to hedge against trade war escalation. The EU acts as a bloc to protect Spain, neutralizing US leverage; Trump's threat proves to be a bluff.