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Friday, July 11, 2025

Trump Demands Allies Pay Up as NATO Eyes Five Percent Defense Goal

NATO leaders are on the cusp of endorsing an unprecedented five percent of GDP defense spending target, but the path to universal adoption appears fraught with challenges. President Donald Trump is vocally insisting that this heightened financial burden fall squarely on the shoulders of America’s allies, explicitly stating the US should be exempt. This stance, coupled with Spain’s successful negotiation for an exclusion, casts a shadow over the unified implementation of the new goals.
The ambitious five percent target is designed with two distinct objectives: 3.5 percent dedicated to core military expenditures, a substantial increase from the existing two percent benchmark, and an additional 1.5 percent designated for enhancing military mobility infrastructure, bolstering cyber defenses, and preparing societies for future conflicts. The core defense spending component, in particular, represents a significant hurdle for many nations, including Spain, which currently lags significantly with only 1.28 percent of its GDP allocated to its military.
Spain’s Prime Minister, Pedro Sánchez, confirmed his nation’s negotiated exclusion, signaling a potential shift in the collective commitment of NATO members. This precedent could open the door for other allies, such as Canada, Belgium, and France, who face similar fiscal constraints, to seek similar waivers. Trump’s continued pressure on allies, including his branding of Canada as a “low payer,” underscores a growing transatlantic divide on equitable burden-sharing within the alliance.
The rationale for this substantial increase in defense outlays is clear: a deepening concern among European leaders about Russia’s aggressive posture and its perceived threat to the continent’s security. NATO experts project that comprehensive defense plans against a potential Russian attack necessitate at least three percent of GDP investment. While a 2032 deadline has been floated for achieving the new targets, the feasibility and enforcement of this timeline remain a subject of ongoing debate among member states.

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