President-elect Donald Trump’s latest demands of America’s NATO partners—that they cede territory to the U.S. and spend more on defense than Washington itself does—risk undermining allies’ confidence and potentially emboldening adversaries.

The transatlantic alliance reached a milestone in 2024 when all non-U.S. NATO allies spent the 2% target on average for the first time.

Lago on Tuesday, president-elect Donald Trump marked the starting shot in what could be a make-or-break test for NATO over Ukraine, Greenland, and defence spending.

US President-elect Donald Trump said that NATO countries should be spending 5% of gross domestic product (GDP) on defence, up from the current 2% target. "They can all afford it, but they should be at 5% not 2%,

Trump's call for NATO states to increase defense spending would also call for a substantial increase in America's military budget.

U.S. President-elect Donald Trump said on Jan. 7 that NATO should raise its defense spending benchmark from 2% of GDP to 5%, echoing his earlier calls for Europe to spend more on its security.

European NATO members would struggle to increase defense spending to 5% considering the high social welfare bill in the continent. But analysts say Trump's demand could be a negotiating tactic to reach a compromise.

US President-elect Donald Trump on Tuesday urged NATO members to increase their defense spending to 5% of GDP. Donald Trump continues to hammer home his claims that these countries pay too little to be protected by the US.