'Rewarding loyalists,' punishing critics: How Trump's Treasury sanctions foreigners

"In fact, I told Scott to cut off all dealings with Spain. I could tomorrow stop, or today even better, stop everything having to do with Spain, all business having to do with Spain."

"Since Trump began his second term, his administration has imposed or rescinded Treasury Department sanctions on foreigners in ways that have diverged from historical precedent or the sanction programs' intent, former State Department officials say."

"The Treasury Department has historically used sanctions to restrict foreigners who pose serious threats to the U.S. and their own countries. The U.S. currently sanctions foreign entities under 37 official programs."

President Trump directed Treasury Secretary Scott Bessent to cut off dealings with Spain after Prime Minister Pedro Sanchez criticized U.S. attacks on Iran as violating international law. Spain's foreign minister warned that targeting Spain through the Treasury Department would affect the entire European Union and make no sense. The Treasury Department can use sanctions mechanisms to target Spanish individuals and businesses. Since Trump's second term began, his administration has imposed and rescinded Treasury sanctions on foreigners in ways that diverge from historical practice and original program intent, according to former State Department officials. Historically, sanctions restricted foreigners posing serious threats to the U.S. and their countries under 37 official programs targeting terrorism, drug trafficking, and human rights abuses.

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