Donald Trump to push NATO allies to spend more on defense—But exempt US from 5% target

At the NATO summit in The Hague, President Donald Trump is likely to urge allies to adopt a bold new defense spending target of 5% of GDP by 2035—while declaring the US should be exempt. The hike comes amid ongoing threats from Russia and fears of waning US support for Ukraine.

Written By Ravi Hari
Published24 Jun 2025, 07:21 PM IST
U.S. President Donald Trump walks to board Marine One to depart to attend the NATO Summit in The Hague, Netherlands, from the South Lawn at the White House in Washington, D.C., U.S., June 24, 2025. REUTERS/Kevin Lamarque
U.S. President Donald Trump walks to board Marine One to depart to attend the NATO Summit in The Hague, Netherlands, from the South Lawn at the White House in Washington, D.C., U.S., June 24, 2025. REUTERS/Kevin Lamarque(REUTERS)

At the NATO summit in The Hague, US President Donald Trump is expected to push allies to adopt a landmark defense spending target — while insisting the United States should be exempt from the same requirement.

NATO leaders are set to approve a significant new goal: allocating 5% of their GDP to defense and security by 2035, more than doubling the current 2% benchmark established in 2014. Trump, claiming credit for the breakthrough, maintains that the commitment should apply solely to America’s allies — not the US itself.

“This is about getting others to do their fair share,” Trump said before departing Washington. “America has done enough.”

What’s in the new NATO spending deal?

The new 5% pledge is split into two parts:

3.5% of GDP on traditional defense spending — including troops, tanks, fighter jets, and ammunition.

1.5% of GDP on broader national security needs — such as cyber defense, military-grade infrastructure upgrades, and energy resilience.

NATO Secretary-General Mark Rutte warned there would be no formal opt-outs, calling the target “essential” amid rising threats from Russia and Iran.

Yet not all allies are on board. Spain has declared the target “unreasonable” and struck a side deal to exclude itself. Slovakia says it reserves the right to decide how it meets the goal. Trump himself argued the US should be exempt, despite being the alliance’s largest funder.

Why spending hike now?

The new target comes at a moment of heightened global instability:

  • Russia’s war in Ukraine has entered its fourth year with no end in sight.
  • European leaders now view Russian aggression as an existential threat to regional security.
  • Moscow is increasingly blamed for GPS jamming, cyberattacks, and sabotage operations across NATO countries.
  • These hybrid threats have intensified concerns within NATO, especially among frontline states.
  • US military support for Ukraine has slowed, with no new pledges announced since Trump took office six months ago.

Amid these challenges, NATO aims to shore up its deterrent strength — and ease fears of US withdrawal under Trump.

“America can’t be everywhere all the time, nor should we be,” said US Defense Secretary Pete Hegseth, signaling a pivot toward greater European responsibility.

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The money problem

Even with the pledge in place, questions remain about how — and whether — allies will meet the 5% threshold:

Only 22 of 32 NATO members currently spend 2% of GDP on defense.

In 2024, NATO members collectively spent 2.61% of GDP — still far below the new target.

Meeting the 5% mark could mean hundreds of billions in new defense spending annually by 2035.

To help, the EU has created a €150 billion arms fund offering loans to members for joint military projects. But some nations, like Germany and the Netherlands, oppose joint borrowing for grants, creating further friction within Europe.

Also Read | What is NATO’s 5% defence spending goal? Key details explained

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