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.
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.