Trump’s push for NATO members to spend 5% of GDP on defense strengthens the argument that the alliance serves U.S. arms interests, by dramatically increasing demand for American military equipment.
In June 2025, President Donald Trump successfully pressured NATO allies to adopt a new defense spending target of 5% of GDP by 2035, more than doubling the previous 2% benchmark. While framed as a response to the threat posed by Russia, this move has profound implications for global arms markets — especially for American defense contractors, who already dominate NATO procurement. Trump hailed the agreement as a “monumental victory,” and critics argue it aligns with his long-standing pattern of using NATO as leverage for economic and strategic gains.
The scale of this increase is staggering. For countries like Germany, France, and Italy, meeting the 5% target would require tens of billions in additional annual spending. Given NATO’s interoperability standards — which favour U.S. systems — much of this new spending is likely to flow directly into American defense firms. This reinforces the notion that NATO functions as a guaranteed market for U.S. weapons, with member states locked into a procurement ecosystem that benefits American suppliers disproportionately.
Trump’s rhetoric further supports this interpretation. He publicly threatened to expel Spain from NATO for refusing to commit to the 5% target, calling them a “laggard” and suggesting punitive tariffs. Such aggressive tactics suggest that the spending demand is not just about security, but about compliance with a U.S.-driven economic agenda. By tying alliance membership to defense spending — and by extension, arms purchases — Trump effectively weaponized NATO’s structure to enforce American commercial interests.
This development adds weight to the argument that NATO’s evolution has increasingly served U.S. economic and strategic dominance. While originally conceived as a mutual defense pact, its current trajectory — especially under Trump’s leadership — reflects a shift toward militarized economic leverage. The 5% doctrine doesn’t just bolster NATO’s deterrence posture; it turbocharges the American arms industry, making the alliance a conduit for U.S. geopolitical and commercial power.