• President Trump criticizes NATO allies for low defense spending, citing a huge gap with U.S. contributions.
  • He highlights $999 billion in U.S. defense spending versus far smaller amounts by key allies.
  • The remarks reignite debate on burden-sharing ahead of NATO's next summit.

U.S. Pays Far More, Trump Says

President Donald Trump on Thursday blasted NATO allies for failing to meet defense spending commitments, arguing that the United States is bearing an unfair share of the burden. "The U.S. spends $999 billion on defense, while the U.K. spends $90.5 billion, France $66.5 billion, Italy $48.8 billion, and Poland $44.3 billion," Trump said during a speech in Washington. "It's ridiculous. We get little in return."

The comments come as NATO members prepare for their annual summit next month, where defense spending is expected to be a key topic. Under current guidelines, each member is supposed to spend at least 2% of its GDP on defense, but several countries, including Italy and France, have yet to meet that target. Trump's criticism echoes longstanding U.S. complaints about European free-riding, but his tone has sharpened in recent weeks, according to people familiar with the matter.

Allies Push Back

European officials were quick to defend their contributions. A spokesperson for the U.K. Ministry of Defence said, "The U.K. remains one of the few allies exceeding the 2% target and is increasing its budget." France and Italy also emphasized their growing defense investments, particularly in joint European projects. However, without a deal to boost spending, the U.S. could face renewed pressure from Trump to reduce its commitment, a scenario that analysts say would weaken the alliance.

Market Implications

Defense stocks in Europe edged higher on Friday, with investors betting that higher spending pledges could boost the sector. Shares of BAE Systems (BAESY) and Leonardo rose 1.2% and 0.8% respectively. Still, uncertainty over U.S. support for NATO weighed on broader European markets, with the Stoxx Europe 600 down 0.3%. "The burden-sharing debate is nothing new, but the scale of Trump's frustration could trigger real changes in alliance dynamics," said a geopolitical risk analyst at a major bank.

Correction: An earlier version of this article misstated Poland's defense spending. It is $44.3 billion, not $43.3 billion.