Spain's government has responded to US President Donald Trump's threat to halt all trade with Spain after Madrid refused to allow American military forces to use its bases for missions related to striking Iran, Al Jazeera reports.

"We have the necessary resources to withstand the possible consequences of a US trade embargo. The US must comply with international law and bilateral trade agreements between the EU and the US," the Spanish government's statement reads.

Earlier, Trump announced plans to halt all trade with Spain after the European country refused to allow American military forces to use its bases for Iran-related strike missions.