NATO leaders agreed to increase defense spending, with most U.S. allies supporting President Donald Trump’s demand for a 5% investment of their gross domestic product in defense.
Background
The call for nations to invest heavily in their armed forces has been met with readiness from many European countries and Canada, which have been increasing their military budgets since Russia’s full-scale invasion of Ukraine in 2022.
Concerns Among NATO Members
Some NATO members have expressed hesitation about meeting the U.S. demand, citing concerns over the proposed split between core military spending and infrastructure costs. Under Trump’s proposal:
- Countries would be required to contribute financially based on their ability to pay.
- In return, they would receive a proportionate share of funds allocated through NATO’s collective budget, ensuring fair contributions from all member countries.
Financial Commitment
The agreement reached by NATO leaders last year sets aside $280 billion annually for seven years, totaling $2 trillion for modernizing militaries across Europe. So far, 22 out of 32 member countries have committed to this plan.
U.S. Leverage and Tariffs
Trump has gained leverage over other NATO countries by questioning whether America would defend them if they fail to meet his requirements. To address these concerns, he imposed tariffs ranging from 20% to 100% on imports from several European Union states, including:
- France
- Germany
- Italy
- Spain
- Portugal
- Greece
- Ireland
- Poland
- Hungary
- Croatia
- Slovenia
- Bulgaria
- Romania
- Czech Republic
- Slovakia
- Austria
- Sweden
- Finland
- Denmark
- Norway
- Iceland
- Luxembourg
- Netherlands
- Belgium
- Switzerland
- United Kingdom
- Malta
Official Responses
In response to criticism about his approach, one senior official stated anonymously:
"I think we’re going back into an era where everyone pays what they can afford."
Another official added:
"And then you pay proportionally according to your contribution."
Pete Hegseth also commented during a press conference following talks with fellow defense ministers:
"That is exactly what I wanted when I came here."
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