U.S. President Donald Trump demanded that all NATO members immediately increase their defence spending to five percent [1] of their gross domestic product.

The demand marks a significant escalation in the U.S. push for allies to share more of the financial burden of collective security. This shift comes as the alliance faces mounting pressure to prove its effectiveness amid rising tensions in the Strait of Hormuz and the broader U.S.-Iran conflict.

Speaking during the 36th NATO summit on April 17, 2026, in Turkey, Trump criticized the current state of the alliance. He said, "NATO is a paper tiger" [2]. The president argued that the alliance remains weak without higher financial contributions from its 32 member states [3].

The proposal for a five percent [1] GDP spending target is a substantial increase over previous guidelines. Trump said that allies must eliminate the perception of the alliance as a "paper-tiger" to maintain a credible deterrent against adversaries.

Germany has signaled its support for the new requirement. A spokesperson for the German Foreign Ministry said, "Germany backs President Trump's demand that NATO members increase defence spending to 5% of GDP" [1].

The summit took place in Turkey, though reports differed on the exact city, citing both Ankara [4] and Antalya [1]. The discussions focused on the necessity of immediate funding increases to stabilize regional security, and reinforce the alliance's military capabilities.

Trump told the alliance to stay away from certain tensions following the volatility in the Strait of Hormuz [2]. He said that the current spending levels are insufficient to meet the evolving threats of the current geopolitical climate.

“"NATO is a paper tiger."”

The demand for a 5% GDP spending floor represents a pivot from the long-standing 2% target, signaling a move toward a more transactional security framework. If the 32 member states comply, it would lead to a massive global reallocation of capital toward military procurement and personnel, potentially altering the economic priorities of European governments while strengthening the alliance's hard-power capabilities.