“We’re going to cut off all trade with Spain,” Trump told reporters during an Oval Office meeting with German Chancellor Friedrich Merz. “We don’t want anything to do with Spain.”

The U.S. president’s comments came a day after Spanish Foreign Minister José Manuel Albares said his country would not allow the U.S. to use jointly operated bases in southern Spain in any strikes not covered by the United Nations’ charter. Albares noted that the military bases in Spain were not used in the weekend attack on Iran.

It is unclear how Trump would cut off trade with Spain, given that Spain is under the umbrella of the European Union. The EU negotiates trade deals on behalf of all 27 member countries.

“If the U.S. administration wishes to review the trade agreement, it must do so respecting the autonomy of private companies, international law, and bilateral agreements between the European Union and the United States,” a spokesperson from Spanish Prime Minister Pedro Sánchez’s office said Tuesday.

The EU said it expects the Trump administration to honor a trade deal struck with the 27-nation bloc in Scotland last year after months of economic uncertainty over Trump’s tariff blitzkrieg.

“The Commission will always ensure that the interests of the European Union are fully protected,” said European Commission spokesperson Olof Gill.

It was just the latest instance of the president wielding the threat of tariffs or trade embargoes as a punishment and came on the heels of a Supreme Court decision that struck down Trump’s far-reaching global tariffs. While the court said that the International Emergency Economic Powers Act does not authorize the president to unilaterally impose sweeping tariffs, Trump now maintains that the court allows him to instead impose full-scale embargoes on other nations of his choosing.

Trump also complained anew Tuesday about Spain’s decision last year to back out of NATO’s 5% defense spending target. At the time, Spain said it could reach its military capabilities by spending 2.1% of its GDP, a move that Trump roundly criticized and responded to with tariff threats as well.

Spain, Trump said, is “the only country that in NATO would not agree to go up to 5%” in NATO spending. “I don’t think they agreed to go up to anything. They wanted to keep it at 2% and they don’t pay the 2%.”

Merz noted that Trump was correct and said, “We are trying to convince them that this is a part of our common security, that we all have to comply with this.”

Spain defended its position Tuesday, saying it is “a key member of NATO, fulfilling its commitments and making a significant contribution to the defense of European territory,” the spokesperson in Sánchez’s office said.

During the Oval Office meeting, Trump turned to U.S. Treasury Secretary Scott Bessent for his opinion on the president’s embargo authority.

Bessent said, “I agree that the Supreme Court reaffirmed your ability to implement an embargo.” Bessent added that the U.S. Trade Representative and Commerce Department would “begin investigations and we’ll move forward with those.”

A representative from the U.S. Treasury Department did not respond to a request from The Associated Press for additional comment.

Sánchez has been critical of the U.S. and Israeli attacks on Iran, calling it an “unjustifiable” and “dangerous” military intervention. His government has demanded an immediate de-escalation and dialogue and also condemned Iran’s strikes across the region.

Trump said, “Spain has absolutely nothing that we need other than great people. They have great people, but they don’t have great leadership.”

Spain’s position on the use of U.S. bases in its territory marks the latest flare-up in its relationship with the Trump administration. Under Sánchez, Europe’s last major progressive leader, Spain was also an outspoken critic of Israel’s war in Gaza.

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Naishadham reported from Madrid. AP journalist Sam McNeil in Brussels contributed.