US President Donald Trump has threatened to sever trade ties with Spain after Prime Minister Pedro Sánchez refused to allow American forces to use the Spanish bases of Rota and Morón for offensive strikes against Iran.

Speaking in the Oval Office during a meeting with German Chancellor Friedrich Merz, Trump launched an extraordinary broadside against Madrid.

“We’re going to cut all trade with Spain. We don’t want to have anything to do with Spain,” he declared, contrasting Spain unfavourably with Germany, which he praised.

Trump said he had instructed Treasury Secretary Scott Bessent to “cut all our relations with Spain,” branding the country’s NATO defence spending record “terrible” and reviving his demand that allies commit 5% of GDP to defence.

The Bases Flashpoint

At the centre of the dispute are the joint US-Spanish military facilities at Rota and Morón. Under the bilateral defence agreement, the United States may use the bases for agreed missions, but any action beyond that scope requires prior authorisation from the Spanish government.

Trump dismissed the restriction. “We could use the bases if we wanted. We could just fly and use them — nobody’s going to tell us no,” he said, offering no legal explanation.

He added: “Spain has nothing we need beyond its fabulous people. Great people — not great leadership.”

Tariffs and Embargo Threat

Trump escalated further, floating the possibility of tariffs or even an embargo. “We have the right to stop all business with Spain. Embargoes, whatever we want. And maybe we’ll do it,” he warned.

The comments come after the US Supreme Court recently limited parts of his tariff strategy, casting doubt on how far he could go without congressional approval.

Germany Weighs In

Asked to respond, Merz appeared to pressure Madrid, insisting that NATO members must “meet the numbers” — referring to a proposed 3–3.5% defence spending target. However, he later clarified to German media that Spain cannot be treated separately in trade matters because it is a member of the European Union.

“Spain is part of the EU. We negotiate trade agreements jointly — or not at all,” he said, stressing that NATO commitments and EU trade policy are distinct issues.

The European Commission also moved swiftly to defend Spain. Trade spokesperson Olof Gill said Brussels expects Washington to honour its trade commitments and pledged to “fully protect the interests of the European Union.”

Starmer Also in the Firing Line

Spain was not alone in Trump’s crosshairs. He also lashed out at UK Prime Minister Keir Starmer for refusing to allow the US to use the Diego Garcia base in the Chagos Islands for initial offensive operations against Iran — though Britain approved its use for defensive missions.

“We’re not dealing with Winston Churchill,” Trump scoffed, accusing Downing Street of offering “very little cooperation.”

He went further, criticising UK energy and immigration policies and branding London Mayor Sadiq Khan “terrible” and “incompetent.”

Downing Street declined to engage in a war of words, reiterating Starmer’s position that it is his duty to act in Britain’s national interest. “That is the decision I have taken, and I stand by it,” the Prime Minister said earlier this week.

With trade threats, NATO tensions and diplomatic tempers flaring, relations between Washington and key European allies appear to have entered turbulent times.