U.S. President Donald Trump demanded that South Korea increase its defense spending, intensifying pressure on his Asian ally. This came after the announcement of a 25% tariff on imports from South Korea to the U.S., according to Bloomberg.

At a Cabinet meeting on July 8, Trump emphasized:

“South Korea makes a lot of money, and they are very good, they are very good, but, you know, they have to pay for their own army.”

– Donald Trump

These comments came the day after Trump announced the imposition of 25% tariffs on goods from Japan and South Korea. However, for South Korea, the tariff implementation was postponed until August 1 to allow time for negotiations.

The issue of costs for hosting 28,500 American troops in South Korea has already been a point of contention during Trump’s previous presidency. Now, pressure from his side is increasing amid North Korea’s heightened activity, which is strengthening its ties with Russia.

Following the NATO leaders’ agreement to raise defense spending to 5% of GDP, South Korea is also negotiating with its allies. According to the Ministry of Defense, the country plans to spend 2.32% of GDP on defense in 2025.

In response to Trump’s statements, South Korea’s Ministry of Defense emphasized the importance of adhering to the agreement on the stable deployment of American troops and maintaining a strong defense posture.

In 2024, the U.S. and South Korea signed a five-year agreement on cost-sharing for American forces on the peninsula. According to the agreement, South Korea will increase its share to 1.52 trillion won (approximately 1.1 billion dollars) in 2026, which is 8.3% more than in 2025.

Rising Defense Spending in NATO

In January 2025, Trump called on NATO countries to raise defense spending to 5% of GDP, noting that most states do not even reach the minimum level of 2%, resulting in the U.S. covering a significant portion of the costs, which is unfair.

U.S. Secretary of Defense Pete Hegseth stated in Brussels on June 5 that NATO countries must increase defense spending to 5% of GDP by the summit in The Hague (June 24–25).

NATO Secretary General Mark Rutte announced that all alliance members will reach the target of 2% of GDP on defense by the end of 2025.

Some NATO countries, especially those bordering Russia, support the idea of increasing to 5%, while others, including Spain, Italy, and Portugal, express doubts about the feasibility and timing of this goal.

Following the NATO summit in The Hague on June 24–25, a plan was approved to increase defense spending to 5% of GDP by 2035. Of these funds, 3.5% of GDP will be allocated to defense, and 1.5% to protecting critical infrastructure, network defense, civil society readiness, innovation, and the development of the defense-industrial base.