NATO’s European allies and Canada increased their defense spending nearly 20% for the second straight year in 2025, yielding to US President Donald Trump’s demands and responding to mounting threats from Russia.

After more than a decade of plodding progress, Canada has officially hit the NATO spending target of 2 per cent GDP set in 2014.

NATO Secretary General Mark Rutte says 2025 marked the first year all allies met the benchmark, with a significant increase in spending across Europe and Canada.