Trump has said members of the military alliance should spend 5% of their gross domestic product (GDP) on defence – a huge increase from the current 2% goal and a level that no NATO country, including the United States, currently achieves. Copyright 2025 Thomson Reuters.

President also plans to ask for "financial contribution" for maintenance of remaining troops, European diplomatic source said.

While Canada’s spending on defence is less than 2 per cent, no NATO member spends as much as what Trump is requesting

Trump used Davos to warn Europe, demanding NATO allies raise defence spending to 5% of GDP and threatening tariffs on companies not manufacturing in the US. He linked lower oil prices to ending the Ukraine war and assured LNG exports to Europe would continue.

I’m also going to ask all NATO nations to increase defense spending to 5% of [gross domestic product], which is what it should have been years ago,” he said in remarks given virtually to the. He noted that “most nations didn’t pay until I came along” in his first term in office.

U.S. President Donald Trump is planning significant changes to America's Europe policy, which could have far-reaching consequences. According to the Italian news agency ANSA, Trump intends to reduce the U.

Europe braces for Trump as NATO spending hikes and tariff threats loom Europe is preparing itself for US President Donald Trump’s second term, especially his defence policies. In the past Trump threatened to pull out of the NATO alliance if member countries didn’t increase their military spending.