NATO leaders agreed on Wednesday to an increased defense spending goal of 5% of each country’s economic output by 2035, more than doubling the previous target of 2%.
President Trump praised the new defense agreement, calling it a “monumental win for the United States” during a speech at the NATO summit in the Netherlands. Mr. Trump has repeatedly demanded that NATO allies boost their defense spending, arguing that other countries disproportionately rely on the U.S..
In 2024, NATO member countries spent an average of 2.61% of their gross domestic product (GDP) on defense, but the figures vary widely across the alliance.
According to NATO estimates, 22 of the alliance’s 32 members met or exceeded the 2% benchmark, with nine falling short of the goal. Iceland is not included in the estimates as it has no armed forces.
What NATO countries spend on defense
Defense spending covers a nation’s armed forces, including personnel, equipment, ammunition and more.
NATO estimates show Poland spent the highest percentage of its GDP on defense and was the only country estimated to spend more than 4%. Estonia and Latvia followed, each allocating around 3.4%.
The United States, by comparison, was estimated to spend 3.2% of its (much larger) GDP on defense.
Nine countries did not reach the alliance’s previous 2% target, which had been agreed to at a summit in 2014.
Canada, Portugal and Italy each spent an estimated 1.5% of their GDP on defense. Slovenia, Belgium and Luxembourg came in a bit lower.
Spain allocated the smallest share of its GDP, at 1.2%.
At the summit on Wednesday, President Trump singled out Spain for criticism over its spending level, saying “they want a little bit of a free ride.” Mr. Trump threatened to make Spain “pay twice as much” during trade negotiations.
Spain’s Prime Minister Pedro Sánchez said his country will not meet the 5% defense spending goal, calling the 2% target “sufficient” and “realistic” for the country.
Since NATO set its defense spending targets in 2014, overall average spending among member states has risen from 1.4% of GDP to 2% in 2024. The targets, however, are not legally binding.
Rachel Rizzo of the Atlantic Council’s Europe Center said the language of the 5% agreement “may leave just enough wiggle room for some allies (such as Spain) to opt out.”
