Donald Trump has threatened to cut off all trade with Spain after the Nato ally refused Washington permission for two jointly operated bases in southern Spain to be used in US strikes on Iran.

“Spain has been terrible,” Trump told reporters during a meeting with the German chancellor, Friedrich Merz, adding that he had told treasury secretary Scott Bessent to “cut off all dealings” with Spain.

He added: “We’re going to cut off all trade with Spain. We don’t want anything to do with Spain.”

Trump’s threat came hours after Spain’s foreign minister had played down the chances of any retaliatory actions.

“The bases used jointly with the US are Spanish sovereign bases that operate within the framework of the treaty with the United States, and it is within that premise – of our sovereignty and the treaty framework – that they can be used,” José Manuel Albares told reporters after Tuesday’s weekly cabinet meeting.

“Therefore, there is nothing strange or surprising about it, and we do not expect any consequences whatsoever.”

He also said Washington had not requested the use of the bases in Rota and Morón.

“I haven’t had a single conversation with any US representatives nor have I had any requests regarding that,” he added.

Trump also criticized Spain once again for refusing to accept Nato’s proposal for member states to increase their defence spending to 5% of their GDP.

“Everybody was enthusiastic about it – Germany, everybody – and Spain didn’t do it,” he said. “And now Spain said we can’t use their bases – and that’s OK. We could use their bases; if we wanted, we could just fly in and use it. Nobody’s going to tell us not to use it. But we don’t have to. But they were unfriendly.”

Spanish government sources responded, saying: “Spain is a key Nato member that fulfils its commitments and makes a significant contribution to the defence of European territory. It is also a major exporting force within the EU and a reliable trading partner for 195 countries worldwide – including the United States, with whom we maintain a longstanding and mutually beneficial trade relationship.

“If the US administration wishes to review this relationship, it must do so respecting the autonomy of private companies, international law, and bilateral agreements between the European Union and the United States.

“Our country has the necessary resources to mitigate potential impacts, to support sectors that could be affected, and to diversify supply chains. In any case, the Spanish government’s commitment is – and always will be – to work for free trade and economic cooperation between countries, based on mutual respect and compliance with international law. Because what the public demands and deserves is greater prosperity, not more problems.”