Spanish Prime Minister Pedro Sanchez and US President Donald Trump are set for another encounter at Sunday's World Cup final, an event unfolding amidst persistent diplomatic friction over defense spending and the conflict with Iran.Mr Sanchez's office confirmed Friday that the Spanish leader will be in New Jersey for the championship match. There, Mr Trump could potentially present the trophy to the Spanish team, who are scheduled to play Lionel Messi’s Argentina.The relationship between the two leaders has been notably strained by Mr Trump's repeated criticisms of Spain's failure to meet Nato's target of allocating 5% of its GDP to defense. These criticisms have often been accompanied by threats of trade reprisals.Earlier this month, at the Nato summit in Ankara, Mr Trump instructed his advisers to "cut off all trade with Spain, including visits." However, he later adopted a more conciliatory tone, stating that Spain had honored payment requests and been "very generous”, a remark Mr.Sanchez's government understood as an acknowledgment of Madrid's compliance with its agreed 2% GDP defense spending target.Trump called for the US to ‘cut off all trade with Spain’ earlier this month (AFP/Getty)Further complicating relations, Mr Sanchez's administration drew the ire of Mr Trump's government earlier this year by refusing the use of Spanish military bases and airspace during the US attack on Iran. At the time, Mr Sanchez emphasized Spain's commitment to fostering the best possible relations with its allies, noting that their informal conversation at the summit was friendly and limited to topics like the World Cup.Mr Sanchez has frequently traveled to the United States during his tenure, primarily for UN General Assembly meetings in New York, and held bilateral discussions with Joe Biden in Washington in 2023. The Spanish royal family, including King Felipe, Queen Letizia, Princess Leonor, and Infanta Sofia, have also confirmed their attendance at the final.Spain will be aiming to win their second World Cup after previously winning the trophy back in 2010. They reached Sunday’s final with an impressive 2-0 win over tournament favourites France on Tuesday.They must now overcome defending champions Argentina, who beat England 2-1 on Wednesday to book their place in the final.