White House Signals Asia-Pacific Defense Spending Surge: 'If Europe Can Do It, So Can Asia'

NATO's Historic Defense Spending Agreement Sets New Global Standard

The North Atlantic Treaty Organization (NATO) made headlines this week with a groundbreaking decision that could reshape global defense spending patterns for decades to come. At the summit held in The Hague, Netherlands, from June 24-25, 2025, NATO members agreed to increase their defense spending target from the current 2% of GDP to an ambitious 5% by 2035.

This dramatic increase represents the most significant shift in NATO's defense spending policy since the alliance's founding. The new target is structured in two components: 3.5% of GDP allocated to core defense capabilities including military hardware, troops, and ammunition, while the remaining 1.5% will fund broader defense-related investments such as cybersecurity, infrastructure improvements, and innovation initiatives.

The agreement came after intense pressure from U.S. President Donald Trump, who has consistently argued that European allies have been 'free-riding' on American security guarantees. Trump's demands for increased burden-sharing, which began during his first presidency and intensified upon his return to office, finally bore fruit as European leaders sought to maintain the transatlantic alliance's stability.

White House Extends Pressure to Asia-Pacific Region

Just days after NATO's historic agreement, the White House made it clear that Asian allies should not expect to be exempt from similar expectations. White House Press Secretary Caroline Leavitt delivered a pointed message during her June 26 briefing, stating that 'if our European allies and NATO allies can do it, then I think our allies and friends in the Asia-Pacific can do it as well.'

This statement represents a significant escalation in the Trump administration's global burden-sharing campaign. While Leavitt noted that specific details would be left to President Trump to discuss, the message was unmistakable: the 5% GDP target that NATO just accepted should serve as a benchmark for Asian allies as well.

The timing of this announcement is particularly significant, coming so soon after the NATO summit. It suggests a coordinated strategy by the Trump administration to leverage the European agreement as precedent for similar demands across the Pacific. Defense officials have already begun signaling that countries like South Korea and Japan, which currently spend around 2-3% of their GDP on defense, should prepare for substantial increases in their military budgets.

South Korea Faces Unprecedented Defense Spending Pressure

For South Korea, the implications of this new standard are particularly dramatic. Currently spending approximately 66 trillion won (about 2.8% of GDP) on defense in 2025, meeting the 5% target would require nearly doubling the defense budget to around 117 trillion won. This represents one of the most significant peacetime military spending increases in the country's modern history.

Pentagon spokesman Sean Pannell confirmed that South Korea is indeed included among the Asian allies expected to meet this new standard. In a statement to Korean media outlets, Pannell emphasized that 'considering China's massive military buildup and North Korea's continued nuclear and missile development, it's common sense for Asia-Pacific allies to move quickly to match the pace and level of European defense spending.'

The pressure on Seoul extends beyond just overall defense spending. The Trump administration has also demanded a five-fold increase in South Korea's annual payment for U.S. troops stationed in the country, from the current level to approximately $4.7 billion. This dual pressure on both national defense spending and burden-sharing payments represents an unprecedented financial challenge for the South Korean government.

Japan and Regional Allies Under Similar Scrutiny

Japan faces equally significant pressure to increase its defense spending substantially. The Trump administration has reportedly called for Tokyo to quadruple its payment for U.S. forces deployed in Japan, from $2 billion to $8 billion annually. Combined with the expectation to reach 5% of GDP in overall defense spending, Japan would need to fundamentally restructure its national budget priorities.

This represents a dramatic shift for Japan, which has historically maintained relatively modest defense spending due to its pacifist constitution and post-World War II security arrangements. The country has been gradually increasing its defense budget in recent years in response to regional threats, but the scale of increase now being demanded would require unprecedented political and public support.

Other regional allies, including Australia and the Philippines, are also likely to face similar pressure as the Trump administration seeks to implement its vision of more equitable burden-sharing across all U.S. alliance relationships. The administration's approach appears to be using the NATO agreement as a template for global defense spending expectations.

Strategic Context: China's Military Buildup and Regional Threats

The push for increased Asian defense spending comes against the backdrop of China's continued military expansion and North Korea's advancing nuclear capabilities. China announced a 7.2% increase in defense spending for 2025, bringing its total to approximately 1.78 trillion yuan ($245 billion). This sustained growth in Chinese military capabilities has heightened security concerns across the region.

U.S. officials argue that the threat environment in Asia-Pacific is even more challenging than in Europe, justifying the demand for equivalent or higher defense spending levels. The combination of China's military modernization, North Korea's nuclear program, and tensions in the South China Sea and Taiwan Strait creates a complex security landscape that requires substantial defensive capabilities.

However, critics argue that the 5% GDP target may be unrealistic for many Asian countries, given their different economic structures and domestic priorities. Unlike European NATO members who have gradually increased defense spending over decades, Asian allies would need to make dramatic budget adjustments in a relatively short timeframe.

Economic and Political Implications for Regional Stability

The demand for dramatically increased defense spending raises significant questions about the economic and political sustainability of current alliance structures. For countries like South Korea and Japan, allocating 5% of GDP to defense would require substantial cuts in other government spending areas or significant tax increases.

In South Korea's case, reaching the 5% target would mean defense spending would exceed the country's entire education budget. This could create domestic political challenges as citizens question whether such massive military expenditures are justified, particularly given the country's other pressing needs including healthcare, education, and social welfare.

The timing of these demands also coincides with global economic uncertainties and domestic political pressures in many allied countries. While the security rationale for increased spending is clear, the practical implementation of such dramatic budget increases will require careful political management and public consensus-building.

Looking Ahead: The Future of Alliance Burden-Sharing

The NATO agreement and subsequent pressure on Asian allies represents a fundamental shift in how the United States approaches alliance relationships. Rather than the traditional model where America provided security guarantees in exchange for strategic positioning and political support, the Trump administration is demanding more tangible financial contributions from all allies.

This approach reflects broader changes in American strategic thinking about the costs and benefits of global leadership. With growing domestic pressure to reduce federal spending and address internal challenges, the administration sees increased allied burden-sharing as essential for maintaining sustainable global commitments.

However, the success of this strategy will ultimately depend on whether allies view the increased spending as necessary for their own security or as an unreasonable American demand. The NATO experience suggests that when faced with clear security threats and the possibility of reduced American commitment, allies may be willing to make significant financial sacrifices to maintain alliance relationships. Whether this dynamic will hold true in Asia-Pacific remains to be seen, but the stakes for regional stability could not be higher.