NATO Sees Sharp Uptick in Europe, Canada's Defense Spending

NATO's European allies and Canada increased defense spending by 20% in 2025 compared to the previous year in real terms, alliance chief Mark Rutte said in his annual report published Thursday, urging NATO members to keep up the momentum.

"I expect Allies at the next NATO Summit in Ankara to show they are on a clear and credible path toward the 5% objective," he wrote, adding that "a strong transatlantic bond remains essential in an age of global uncertainty."

President Donald Trump has repeatedly demanded that NATO partners significantly boost defense expenditures, as the U.S. administration maintains that European allies should ultimately assume primary responsibility for the conventional defense of the continent.

Trump criticized NATO allies on Thursday, writing in a Truth Social post that NATO countries have done "absolutely nothing" to help with Iran.

"THE U.S.A. NEEDS NOTHING FROM NATO, BUT 'NEVER FORGET' THIS VERY IMPORTANT POINT IN TIME!" he wrote.

In his annual report, Rutte said that last year "all Allies reported defense expenditure figures that met or went beyond the 2% target first set in 2014, with many making steep increases in spending." NATO leaders agreed at a summit last year to spend 5% of GDP on defense and related investments by 2035.

Countries pledged to spend 3.5% of GDP on core defense — such as troops and weapons — and 1.5% on broader defense-related measures such as cybersecurity, protecting pipelines, and adapting roads and bridges to handle heavy military vehicles.

Three NATO countries — Poland, Lithuania, and Latvia — already exceeded the new 3.5% target last year, according to the report's estimates.

Several countries including Spain, Canada, and Belgium, were at 2%.

In total, the alliance of 32 member countries spent 2.77% of GDP on defense in 2025.

The United States accounted for around 60% of alliance defense expenditure in 2025.