Trump to demand NATO members spend 5% of GDP on defense – report

Currently the NATO target is 2% of GDP and 9 of the 32 members don’t even hit that.

According to the FT, Trump’s team has told European officials that he will demand that NATO states spending 5% of GDP on defense and also that he plans to continuing supplying aid to Ukraine.

The report plays down the demand and says he would settle for 3.5% or 3% in order to avoid tariffs.

I don’t think anyone has any idea what’s going to happen in Ukraine in the year ahead but many of the Trump tariff threats aren’t looking so bad. This isn’t such a tough deal for Europe to make, provided it ends the tariff threat for four years.

This article was written by Adam Button at www.forexlive.com.