Trump Pressures NATO Allies on Defense Spending and Trade

President Donald Trump has adopted an assertive strategy in international relations, recently threatening Spain with tariffs unless the country increases its defense spending to 5% of its GDP. This approach reflects a broader trend in which Trump has successfully pressured nations, particularly within NATO, to meet their financial commitments, especially regarding defense spending.

In 2006, NATO allies pledged to allocate at least 2% of their GDP towards defense. Following years of stagnation, the Obama administration negotiated a commitment in 2014 for all member countries to achieve this target by 2024. However, when Trump took office in 2017, only five out of 28 NATO nations had fulfilled this obligation. By 2021, the number of compliant countries had doubled, significantly increasing allied military spending.

Fast forward to 2025, and bolstered by the ongoing conflict in Ukraine and heightened concerns over Vladimir Putin, Trump has reportedly achieved the ambitious goal of convincing NATO allies to commit 5% of their GDP to defense. This represents a substantial shift in the alliance’s financial landscape and underscores the effectiveness of Trump’s tactics in motivating compliance.

Trump’s administration has also pushed for adherence to trade obligations, particularly in negotiations with China. The country has a long history of not honoring its commitments, including failing to purchase an additional $200 billion in U.S. exports as promised during Trump’s first term. This pattern of non-compliance extends beyond China, affecting many nations, including U.S. allies.

Concerns about trade disputes have been formally addressed by the House Appropriations Committee in their August report regarding the FY2026 spending bill for national security and related programs. The report highlighted ongoing issues between U.S. businesses and foreign governments, expressing particular concern over disputes involving property rights in nations such as the Democratic Republic of Congo, Djibouti, Honduras, Kuwait, and Mexico.

For instance, Mexico’s state-owned oil company, Permex, reportedly owes American contractors $1.2 billion. Allegations have surfaced that Kuwait is failing to meet its financial obligations, particularly concerning the Al Zour refinery, one of the largest oil refinery projects in the Middle East. Additionally, U.S. companies operating in Honduras have expressed concerns over politically motivated threats related to asset expropriation.

The report concluded with a directive for Secretary of State Marco Rubio to engage diplomatically to facilitate the resolution of these disputes. U.S. ambassadors stationed abroad should actively advocate for American interests, pushing host governments to uphold their agreements.

The administration has emphasized the importance of protecting U.S. jobs and ensuring fair global trade practices. Given the backgrounds of many officials within the administration, there is a strong understanding of the challenges American companies face in international markets.

By replicating the focused approach used to secure NATO spending commitments, the Trump administration can also assist U.S. firms in resolving conflicts with foreign governments. If allies wish to maintain a beneficial partnership with the United States, they must honor their commitments to American businesses and workers. This strategy not only puts America first but also fosters economic growth and prosperity.

As the geopolitical landscape continues to evolve, the effectiveness of these tactics will be closely monitored, especially in light of ongoing conflicts and economic pressures.