In a significant shift in defense strategy, NATO allies have agreed to elevate their defense and security spending to 5% of GDP by 2035, a move endorsed by U.S. President Donald Trump. Speaking at the United Nations General Assembly in New York, Trump praised this commitment as a pivotal enhancement for the alliance.
The decision represents a substantial increase from the previous benchmark of 2% of GDP. Under the new agreement reached during the 2025 NATO Summit in The Hague, member countries will allocate at least 3.5% of their GDP to core defense requirements. An additional 1.5% will focus on defense-related investments and broader security needs.
Trump also addressed ongoing geopolitical tensions, calling for an end to the conflict between Russia and Ukraine, which continues to result in significant casualties. He affirmed the United States’ dedication to pursuing diplomatic solutions to resolve the war.
NATO has reported a concerted effort by European allies and Canada to increase defense spending as part of the new 5% target. These nations collectively boosted their core defense expenditure by nearly 20% in real terms in 2025 compared to the previous year.
This 5% spending target is part of NATO’s overarching strategy to fortify military capabilities, advance defense production, and enhance collective security across its member states.