NATO's New 5% Target For Defense A Win for Trump; Carney Turns To Critical Minerals

NATO's 32 member states agreed to increase defense spending to 5% of GDP by 2035, representing a significant increase from the long-standing 2% benchmark.

The new target is the most ambitious in the alliance's 76-year-old history and a major political win for U.S. President Donald Trump, who had long criticized European allies for underfunding their militaries.

"Our investments will ensure we have the forces, capabilities, resources, infrastructure, warfighting readiness, and resilience needed to deter and defend in line with our three core tasks of deterrence and defence, crisis prevention and management, and cooperative security," the press release stated.

The agreement includes a 3.5% floor for core defense spending, encompassing troops, weapons, and ammunition, and allows up to 1.5% for related areas, such as infrastructure, cybersecurity, and civilian preparedness.

Members must follow credible annual progress plans, with a major review anticipated for 2029. The declaration also commits allies to expand defense industrial cooperation, eliminate trade barriers, and invest in emerging technologies such as drones and satellite systems.

In a message that Trump shared on social media and AP News relayed, NATO Secretary General Mark Rutte said that Trump "will achieve something no American president in decades could get done."

Still, major issues were sidestepped. The summit delivered no new aid for Ukraine, offered no updated posture on Russia, and avoided discussing China. "All the big challenges were left off the agenda," Torrey Taussig, a former Europe director at the U.S. National Security Council, said, according to the New York Times.

Carney Leans on Critical Minerals

The 5% goal significantly widens what counts as defense spending, offering nations flexibility to invest in long-term resilience—such as transportation networks and innovation hubs—tied to national security. NATO leaders framed the move as essential to confronting growing threats and maintaining credible deterrence.

"We are investing at the scale and urgency required by the new era of strategic competition," the official summit document stated.

Canada's Prime Minister Mark Carney noted that the country is ready to meet the new spending requirement, estimating that a 5% pledge would cost about CA$150 billion ($109 billion) over the next decade. Still, he pointed out that roughly one-third of that is already underway, with investments in critical mineral infrastructure that support defense resilience.

Carney clarified his country's focus on advanced technologies, such as drones, AI, satellites, and cyber warfare—not heavy platforms like carriers—and said spending would evolve as threats change. "We'll do a review in four or five years," he said per Financial Post, adding that defense and trade talks with Trump remain active.

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