NATO's 2025 annual report reveals all 32 member countries met the 2 percent GDP defense spending target for the first time, with European allies and Canada increasing expenditures by 20 percent to $574 billion amid ongoing tensions over the Iran conflict. Overall NATO defense spending reached $1.4 trillion, though the United States' share declined from 64 percent to 59 percent as its spending dropped marginally to $838 billion. Poland leads with 4.3 percent of GDP spent on defense while Spain, Portugal, Albania, Belgium and Canada remain at the 2 percent minimum. NATO members agreed to raise the spending target to 5 percent of GDP by 2035, with Europe and Canada's equipment spending surging 34 percent, signaling a major shift in transatlantic burden-sharing and military investment priorities.
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