Is NATO Forever? Trump’s Demand of 5% Defense Spending of GDP

https://www.rozen-bakher.com/timeline-risks/14/04/2025/1500

Published Date: 14 April 2025 at 15:00.


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Dr. Ziva Rozen-Bakher

A Researcher in International Relations/International Business with a speciality in Risks for Foreign Direct Investment (FDI), International Trade, and Mergers and Acquisitions (M&As) in relation to Security Risks, Political Risks, Economic Risks, and Strategic Risks

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14 April 2025 at 15:11. Is NATO Members are going to spend on defence 5% of their GDP? Clearly NOT, so NATO not for long, or perhaps NATO not for long with USA, which is going to make NATO irrelevant defence alliance. Still, I need to explain it to those who does not familiar with Trump’s agenda, so let start.

Trump does not care about NATO nor about Europe defence, and in particular, Trump does not like the ‘War-Game’ between the EU and Russia. Impotently, Trump does not want to spend USA’s money on anything including on NATO and because of that he cancelled all the activities of USAID. Therefore, Trump prefers to see the USA without the ‘headache’ of NATO, unless USA is going to benefits from that. Since 2006, NATO Members are obligated to spend 2% of GDP on defence, but over the years, most of the NATO members did not fulfil this obligation (see below), even after the start of the Ukraine war, so from the viewpoint of Trump, if NATO members will increase their defence spending to 5% of their GDP, then it is worth for the USA to remain in NATO, because most of this money will go to the USA’s defence industry, which will increase the revenue and jobs among the USA’s defence firms. In other words, France and Germany have also defence industry, but the prominent one among NATO members is the USA’s defence industry, so if NATO members will increase their defence budget, then they will likely buy weapons from USA more than from any other NATO members, which is very good for Trump agenda. However, if NATO members will refuse to the Trump’s demand of spending 5% of GDP on defence, then for Trump, NATO is a ‘headache’, rather than a ‘income source’. Hence, my prediction is that eventually, Trump will decide to leave NATO (Formal withdrawal) or to ‘freeze’ USA’s activity in NATO (Informal withdrawal), because unlikely that NATO members will agree or will be able to increase their defence spending to 5% of GDP, which will lead to a situation that NATO will become irrelevant defence alliance namely, NATO not for Long. 

For more information about NATO:

See also: 

Source of the Charts below: How much is each NATO country spending on its military in 2024?



Dr. Ziva Rozen-Bakher

Dr. Ziva Rozen-Bakher - A Researcher in International Relations with a Focus on Security, Political and Economic Risks for Foreign Direct Investment (FDI) and International Trade

https://www.rozen-bakher.com/
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