NATO allies agreed this week to dramatically increase defense spending to 5% of their gross domestic product by 2035, more than doubling the current 2% target, in a major victory for President Donald Trump, who has long pressured European nations to shoulder more of the alliance’s financial burden.
The agreement at the two-day summit in The Hague represents the most significant expansion of NATO defense commitments since the alliance’s founding 76 years ago. All 32 member nations endorsed the new framework, which splits the 5% target into 3.5% for core defense spending and 1.5% for broader security investments. The deal nearly collapsed when Spain secured an exemption to cap its spending at 2.1% of GDP.
Canadian Prime Minister Mark Carney announced his country would meet the 2% target by early 2026, five years ahead of schedule, and pledged to work toward the new 5% goal by developing critical mineral resources that count toward defense-related spending. Canada managed only 1.45% of GDP on defense under former Prime Minister Justin Trudeau’s government.
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Carney’s intends to leverage Canada’s vast mineral wealth, including lithium and rare earth elements critical to defense technologies. By counting mineral development and related infrastructure investments toward the 1.5% “defense-related” portion of the spending framework, Canada aims to meet obligations while strengthening strategic resource sectors. The government is adding $9 billion Canadian in defense spending this year.
European allies and Canada invested $485 billion in defense in 2024, a nearly 20% increase from 2023. The new targets reflect growing concerns about Russian aggression and Trump’s demands for greater burden-sharing. NATO Secretary-General Mark Rutte called for a “quantum leap” in military spending, specifically requesting a 400% increase in Europe’s air and missile defense capabilities.
The summit drew additional attention when Trump publicly posted private messages from NATO Secretary-General Mark Rutte that effusively praised Trump’s Iran strikes. “Europe is going to pay in a BIG way, as they should, and it will be your win,” Rutte wrote. Other world leaders have employed similar flattery tactics when dealing with Trump.
Rutte even capitalized certain words, Trump-style.
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