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The weekly copper price is up on the back of mine supply concerns and China demand
Copper prices were on track to gain a weekly % of?1.5% this Friday. This was due to concerns about mine supply disruptions and signs of active demand from?China, the top consumer. By 0948 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen by 1.2% to $14,473.50 per metric tonne. Yangshan Copper Premium This week, the price of copper in China reached its highest level in four years, after the country returned from its week-long vacation. The Shanghai Futures Exchange monitors copper inventories in warehouses. The end-of-week stock level was 58,744 tonnes, an increase of 20,000 tons over the previous week. Exchange data revealed that copper stocks at the LME registered warehouses fell to a six-week-low of 233.025 tons, after daily outflows totaling 4,700?tons. This was mainly due to warehouses in Taiwan and Hong Kong. Since 2025, copper prices have been supported by the constant transfers of metal to Comex warehouses, especially in the last six months. This is due to uncertainty about potential US import tariffs for refined copper. Comex inventories are at a record high of 711 609 tons. Cash copper contracts ended Thursday with a $97 per ton premium over the three-month contract. Morgan Stanley stated in a report that "any slowdown in US stocks could make the markets feel looser. But China's demand has been resilient, and supply is experiencing significant disruptions." The union representing Antofagasta’s?Centinela mine in Chile has said that the strike will?begin affecting output in November. Antofagasta initially downplayed its impact, but this situation has increased the risk of disruptions at other mines. Aluminium and lead, among other LME metals, rose by 1.1% each to $3,085 a ton and $1,880 per ton. Zinc rose 1.7% to $3.781.50. Tin increased 2.1% to $52,305. Nickel climbed 1.2%, to $15,730.
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AI-related companies drive the majority of third-quarter US earnings increases
US companies will likely deliver a third-quarter earnings surge, and AI-related players, like the stock market rally, are driving most of these gains. Investors are excited about the hyper-growth of AI companies, but they are also concerned about the future of the share price and how long this trend will continue. According to Tajinder dhillon, LSEG’s head of earnings research and equity, analysts expect S&P500 earnings to increase by 31% in the third quarter. Two-thirds will come from the tech sector, including AI giants Alphabet and Amazon.com, as well as Meta Platforms. The S&P 500 reached a new record this week, ahead of earnings season. This is expected to begin unofficially next?week when banks such as JPMorgan Chase or Goldman Sachs report their results. "It is all AI, and to a lesser degree, energy and material, but this is because of geopolitics,"?Sameer samana, the head of global equity and real assets at Wells Fargo Investment Institute. It wouldn't be surprising if 70-80% growth could be attributed tech and AI. The US oil price has risen by roughly 30% during the third quarter due to the ongoing US-Israeli conflict with Iran. Samana pointed out that the?earnings estimates for the third-quarter are among the lowest. Strategists are unsure if the third-quarter growth in earnings can match the explosive growth seen in the second quarter. Most companies beat analyst's estimates and this is likely to continue in the third quarter. LSEG data shows that the S&P 500's earnings grew by 54% in the second quarter, the highest growth since 2021. LSEG data showed that excluding mark-to-market gains from Alphabet and Amazon.com for AI-related investments the growth rate was still about 35%. This is the highest level since 2021. Anthony Saglimbene is the chief market strategist of Ameriprise Financial. He said that investors should be concerned because we're approaching "peak earnings growth" in this cycle. "A lot is this AI trade built on continuing capex spending. Every quarter, as they continue to do so, the hurdle rates and scrutiny get higher." Dhillon, based upon LSEG data, said that earnings for US semiconductor firms, which are among the largest beneficiaries of the AI boom will?have risen by about 136% compared to about 158% during the second quarter. Nick Raich is the CEO of Earnings Scout. Three months ago, we were going 150 miles per hour. Raich stated that the latest reports, including those from Micron Technology, were strong and suggested other companies continue to "reap the benefits." Micron, a chipmaker, forecasted quarterly revenue that was above expectations and said customers had boosted their commitments to its long-term supply agreements up to $32 billion. This week, Google signed a huge power deal with Constellation Energy. Investors will also be paying close attention to the impact of higher interest rates on corporate profits during this earnings season. The US bond yields are rising due to concerns over inflation, high oil prices, and debt problems elsewhere. Samana warned that heavy borrowers such as utilities are at risk.
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Campaign group warns that the new Congress in Brazil poses a threat to environmental legislation
According to a report by the climate advocacy group Observatorio Do?Clima that found almost 70% of elected legislators have no or little interest in environmental issues, Brazil's new Congress will likely pose a greater obstacle to legislation protecting the environment after elections this month. The study examined bills, legislative initiatives, speeches, and public statements made by newly elected and reelected legislators. It concluded that 64 out of 81 senators have demonstrated a "very low" commitment to environmental issues. In the lower chamber, 345 out of 511 legislators were placed in the same category. According to the study, the Liberal Party, which is home to Flavio Bolsonaro (a right-wing senator) who will be facing President Luiz Inacio Lula in a presidential runoff later this month has the lowest environmental credentials of all major parties. Bolsonaro defeated Lula in a first round despite pollsters' predictions, but he didn't get enough votes to prevent a second ballot. The environmental commitment of all 28 senators and lower house members who were elected by the party on Sunday was rated as very low. The study also found that other right-leaning political parties, such as?Novo and Republicanos, Progressistas, and Uniao Brasil showed low support for environmental issues. Observatorio do Clima stated that environmental advocates may face a more 'challenging' political landscape if Bolsonaro, whose previous?comments about climate change caused concern, is elected President. I contacted the parties named but did not receive a response. The group said that proposals to weaken environmental protections, such as measures to reduce protected lands, allow mining on Indigenous land, and ease licensing requirements for environmental matters, could gain "traction" under the new Congress. Suely Araujo is the public policy coordinator for the group. She said, "This image shows four years of hard work by those who are focused on climate and environment issues."
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Trump's comment that Iran can 'take out Los Angeles' was misinterpreted
US President Donald Trump said on Thursday that comments he made about Iran being able to "take out" California cities were misinterpreted. He was referring instead to the need for people to tolerate higher gasoline prices. Trump made these remarks on Monday at a Nebraska political rally, where he talked about the economic sacrifices of Americans during World War II. "Remember that the 'war' is artificial, it costs a lot, but it's worth it," he said. "It is a small price to pay in order to keep the world and our country safe. They could take out an entire city. Let's?take Los Angeles out, let's?take San Diego out. It's a small price to pay and it will be over very soon." California's Democratic Leaders and some Republican colleagues quickly condemned the remarks. Trump stated in a Truth Social posting on Thursday that "a temporary increase in Gasoline prices is a small price to be paid for Iran not having a nuclear weapon." "If you want to see a huge price, can you imagine what would happen if they bombed San Diego and/or Los Angeles?" He continued by saying he loved both cities. Trump has dismissed concerns about cost of living stemming the Iran conflict in the past.
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US to rescind methane policy against oil and gas industry
The US Environmental Protection Agency announced on Wednesday that it would be scrapping the Biden-era regulation aimed at curbing large leaks of'methane' from oil and gas operations. The move is part a broader effort by the Trump administration to reduce regulations, which it claims burden US businesses in its quest to increase fossil fuel production. "Americans should be able to afford heating their homes during the winter and filling up their cars to drive to work." The people who produce the energy cannot?do this when they are burdened by unnecessary burdens," EPA Administator Lee Zeldin stated in a press release after announcing the decision at a meeting with representatives of the oil and gas industries in New Mexico. The "super emitter program" of the EPA requires that companies react when third parties use remote sensing to report suspected methane leaks. After taking office in 2017, the Trump administration?delayed implementing this policy until next. EPA claimed that its proposal to rescind this?rule could save $45 billion a yearly. The oil and gas industry, which is a major source of methane, is responsible for the second largest?cause?of climate change?after carbon dioxide. Environmental groups have criticized the move. In a statement, Mahyar Sorour of Sierra Club's Beyond Fossil Fuels said: "This giveaway is foolish and shortsighted. It reveals to whom the Trump administration works - its political donors."
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US seizes $3 Million in fuel shipments from Cuba as crackdown continue
The US announced on Wednesday that it had seized 90 separate shipments of biodiesel bound to Cuba, worth nearly $3 million. This is the second time this week US authorities have announced the seizure "illegal" fuel en route to Cuba. The Trump administration is continuing to choke off Cuba's energy industry, only allowing small amounts of fuel to be shipped to the private sector on the island in an effort to undercut the Cuban government. Jose Figueroa, Special Agent in Charge of Homeland Security Miami, told Miami reporters on Wednesday that the seized cargo was destined for Enetec, an Enetec-based state-owned fuel firm sanctioned earlier this year by the US. The authorities said that they intercepted fuel shipments at Port Everglades in south Florida and Houston before they left the US. Homeland Security reported that more than 600,000 gallons were seized. Figueroa stated that "an effort of this magnitude to undermine US sanction is not an accident." These actions are aimed at shipments that could benefit the Cuban government through a state controlled entity. Anyone who attempts to undermine US laws to fund, facilitate or profit from such an effort should be put on notice. Cuba's government didn't?comment immediately on the fuel seizure. Cuba's communist-run government has called the Trump administration's blockade of fuel on Cuba "economic war" and "illegal". The blockade has exacerbated the ongoing problems of blackouts, shortages of water and inflation on the island, pushing it towards a humanitarian catastrophe. US President Donald Trump stated openly that his goal is to overthrow Cuba's government with the?blockade & sanctions. Last week, the US Coast Guard announced that they had intercepted in September a large container vessel carrying fuel bound for Cuba. The Coast Guard said that the ship was attempting to evade authorities, and had large amounts of fuel hidden within its ballast tanks. In either case, the US has not disclosed the identities of the exporters.
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Russia claims that Ukraine has struck two nuclear facilities at Zaporizhzhia
The head of Russia's state nuclear corporation said that despite the fact that Ukrainian drones had attacked two facilities at Zaporizhzhia, a Russian-held nuclear power plant in southeast Ukraine, there was no danger to nuclear safety. Alexei Likhachev said that a driver who was delivering food to plant workers had been killed by the drone attack. Likhachev said that a laboratory and a plant for the processing of radioactive waste were targeted. Ukraine has yet to comment on the incident. The plant's management announced on?Saturday that Ukrainian shelling in recent weeks has damaged the external power supply equipment. Electricity is currently provided by emergency diesel generators. The plant does not produce electricity, but it needs two external links for power to cool nuclear fuel. In the first few weeks of the war, which began with Moscow's invasion of its smaller neighbor in February 2022, Russia captured the?plant - Europe's biggest with six reactors. Since then, Moscow and Kyiv accuse each other regularly of military actions that compromise nuclear safety. The International Atomic Energy Agency (IAEA), the UN's nuclear watchdog has repeatedly taken action to ensure a ceasefire surrounding the plant so that repairs could be made to the lines connecting the facility to the main grid. UN monitors are at the Zaporizhzhia and three other plants in Ukraine. Maria Zakharova of the Russian Foreign Ministry wrote on her ministry's website that the West was enabling Ukrainian aggressions by not publicly condemning them. Zakharova wrote that "Kyiv has intensified its shelling of the Zaporizhzhia nuclear plant because Western countries have not responded appropriately to these actions, effectively facilitating new assaults." "Such an attitude toward strikes by the Ukrainian military shows the true 'value' of statements made by representatives of these nations about nuclear and physical safety at international forums."
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The top cases in the US Supreme Court docket
US Supreme Court will hear a number of important cases in its new term, which begins Monday. These include issues like President Donald Trump's Immigration Policies, the ban on assault-style rifles, the financial responsibility of Big Oil for climate change and Republican-backed voting restriction. This is a list of some of the cases that are being argued in the current term. The term runs until the end of June. Big Oil Climate Suit ExxonMobil, Suncor Energy and Boulder officials argued on October 5, attempting to "thwart" a lawsuit filed by Boulder officials. The Justices grappled with the complex question of whether local governments should be allowed to hold oil companies responsible for harms caused by climate change. After Colorado's highest court allowed Boulder to sue them for violating state laws and seeking unspecified damages, the companies filed an appeal. Trump's administration supported the companies. The justices expressed concerns over unduly restricting the power of states to pursue litigation related to climate change, and the potential for chaos if local government across the nation were allowed to sue these corporations. The ruling is expected to be made by the end June. TRUMP'S MANDATORY DETENTION OF IMMIGRANTS The court will determine the legality Trump's policy, which subjects millions of illegal immigrants living in the US to mandatory detention while deportation proceedings are underway. Trump's policy of mass deportation includes this policy. The Supreme Court heard the Trump administration appeal of a lower-court ruling that ruled against the policy, in a case concerning a Brazilian citizen. The US administration has abandoned its long-standing interpretation of federal laws that allowed immigrants living in the US to be released under bond until their cases were heard in immigration court. Dates for the arguments have not been set yet. The ruling is expected to be made by the end June. DEPORTATIONS TO A THIRD COUNTRY BY TRUMP In December, the justices will hear arguments over the Trump administration’s policy to deport migrants to "third countries", or other nations than their home country. They won't give them the opportunity to demonstrate the harms that they might face. On September 29, the court allowed the Trump administration to continue its policy, suspending a federal judge’s ruling that deporting migrants to third-country countries was illegal. Human rights groups claim that more than 25,000 migrants were deported under this policy to 29 different countries. The ruling is expected to be made by the end June. Ban on assault-style rifles On December 2, the justices will hear arguments in a challenge against state prohibitions of 'assault style rifles. This case involves a weapon type that is often associated with mass killings. The lower courts in Cook County Illinois and Connecticut upheld the bans on powerful semiautomatic weapons such as AR-15s. Lower courts rejected arguments that these measures violated the US Constitution's Second Amendment rights to "keep and bear arms." Gun rights groups, as well as other opponents, have argued that Supreme Court precedents regarding the Second Amendment protect firearms in "common usage." The end of June is the expected date for a ruling. Voting Rights On December 8, the justices will hear arguments in a Republican led bid to reinstate voter restrictions in Arizona. This would require proof of citizenship for all voter registrants, and purge voter lists in Arizona from alleged non-US citizen voters. Republicans appealed a lower court's decision to stop certain provisions of Arizona law for violating federal voting registration laws. The Trump administration has supported key aspects of the appeal. The Arizona measure, according to critics, adds additional mandates for voting which unfairly targets Latinos and Native American voters. These groups tend to support Democratic candidates. The ruling is expected to be made by the end of June. LGBT RIGHTS On November 3, the justices will hear arguments in an appeal by the Archdiocese of Denver, and other Catholic entities, to be exempted of a Colorado program that funds preschools' nondiscrimination requirements. A lower court ruled that Colorado's program didn't violate the First Amendment rights of the Catholic plaintiffs. State funds are provided for preschools. The Catholic plaintiffs objected that the state required schools receiving funding through the program to give all children an "equal chance" to enroll in pre-school, regardless of certain characteristics. This included the sexual orientation of students and their families. The ruling is expected to be made by the end June. EPIC GAMES SUE AGAINST Apple Apple will try to avoid being found in contempt by the justices in its legal battle with Epic Games, the maker of "Fortnite". The iPhone maker had been found to be in violation of an order from a court ordering sweeping changes in its lucrative App Store as part the antitrust litigation. Apple appealed the ruling of a lower court that upheld a federal judge's decision in Oakland, California finding Apple in contempt for Epic's lawsuit against App Store fees. Dates for the arguments have not yet been announced. The ruling is expected to be made by the end June. PEPSICO TRADEMARK CASE The court will hear arguments regarding a claim by Rise Brewing, a maker of canned coffees, to hold PepsiCo responsible for an alleged trademark violation involving Pepsi’s morning energy beverage "Mtn Dew Rise." Rise Brewing appealed the ruling of a lower court that rejected the company's claim the name "Mtn Dew Rise," infringes on its trademarks, and confuses customers with its coffee brand. No date has been set for the arguments. The ruling is expected to be made by the end June.
Special Report- Trump's pressure against NATO is changing Europe's defences. Will it end the alliance?
Mihail Kogalniceanu Airport in Romania was designed to make Americans feel comfortable. The streets of the base are named Alabama (the state), Ohio (the state), Alaska (the territory) and George Washington. Since 1999, the base has been home to U.S. soldiers who have supported America's wars against Iraq and Afghanistan.
About half of the roughly 2,000 American soldiers in Romania last year, the majority of whom lived at the base, left as the Trump administration began to realign the U.S. Military presence in Europe. The departures in Romania, a North Atlantic Treaty Organization bordering Ukraine country, caused alarm. MK, as it is called, sits at the eastern flank of the alliance, during a period when Russian drones are repeatedly crossing into NATO territory.
When I visited MK back in July, it told a much more complex story about President Donald Trump’s efforts to remake NATO. Nine U.S. KC-135 Stratotankers parked at the base, which were deployed to refuel American bombers and jets during the Iran War. The crews and support staff of the KC-135 Stratotankers had offset earlier troop departures. This was a reminder to Washington that it still heavily relies on European bases. The Stratotankers remained in place for more than two months.
This paradox is at the heart of Trump's conflict with the 32-nation coalition. He has threatened to cut troops, badgered allies about defense spending, and criticized European governments for not supporting the U.S. - Israeli war against Iran unconditionally. A?examination on U.S. military activities in Europe revealed that the Trump administration is continuing to invest in NATO facilities, and relying upon them to project its power throughout Europe, the Middle East and even beyond.
In order to assess the impact of Trump's campaign against NATO, we interviewed over 50 Western officials and experts in defense, including former ambassadors from the United States, senior Trump administration officials and congressional aides. Journalists also visited NATO bases in Romania and Estonia and watched NATO military exercises near the coast of North Carolina.
Reporting revealed a relationship under strain, but not yet broken. Nine former and current U.S. government officials said that powerful U.S. defence contractors with large European customers and Congressmen Republicans and Democrats have the political power to stop a U.S. withdraw from NATO, something Trump has threatened to do repeatedly.
Trump's attacks have damaged the 77-year old alliance in ways that both European and American analysts say are hard to reverse. Europe is questioning America as a partner in security, according to a new study. These doubts now influence defense spending, weapon procurement, and long-term planning on the continent.
Many interviewed spoke of a decline in transatlantic confidence that has undermined NATO's main deterrent, Article 5, which states that "an armed attack against one member is treated as an attack against all." An unreliable U.S. leading a failing NATO could be disastrous for Europe's safety, as it faces an aggressive and openly expanding Russia on its eastern border.
The study found that despite the increase in military spending across NATO, eight countries, including Canada, Poland and Denmark, are diversifying away from their dependence on U.S. technology, weapons and defense companies. Trump's attempt to get Europe to increase its defense spending could backfire if it causes some of his allies to become less dependent on U.S. military contractors and technology.
"The pressure was effective, but it caused real uncertainty," said J.C. Lintzenich. He is a former senior U.S. military official in the intelligence community who left government service in February, after advising top Pentagon officials and policymakers at Congress. "Europe is spending a lot more money, is taking its defense more seriously and is accepting more responsibility. That is a great success." There is a genuine fear in Europe that America could abandon them.
Olivia Wales, White House spokesperson said that President Trump had done more than anyone for NATO. "He will unapologetically promote America's interest." Trump's claim to credit for increased European defense spending is a lie. It has been fuelled by Russia's full scale invasion of Ukraine 2022 that has destroyed cities, killed thousands and forced millions of Europeans to flee.
Matthew Whitaker told reporters that "a strong alliance is one where allies hold each other accountable." NATO released a statement pointing to remarks made by Secretary General Mark Rutte who praised Trump's efforts in driving up defense spending throughout the alliance.
Trump's ability, however, to remake NATO is hampered by significant limitations. According to two U.S. government officials, U.S. Secretary of Defense Pete Hegseth planned to announce the reduction of 25,000 U.S. soldiers in Europe before leaving for a NATO Ministerial Meeting in Brussels, in June. According to two U.S. officials, the proposed cuts would have brought American forces in Europe under the 76,000-troop mandated by Congress and signed into law last summer.
Hegseth, instead, faced resistance from Trump's administration and delivered a warning to NATO's curved glass-and-steel headquarters in Brussels. The Pentagon will conduct a six month review of America's forces in Europe. It will pay particular attention to countries that refuse or say they are unsure or waiting and seeing when Washington asks for support. Hegseth stated that the review would be thorough. "Some countries are going to fail."
According to a copy reviewed by, the Pentagon has kept quiet about the review. However, in August, it created a document that included 57 questions aimed at assessing allies' military, financial, and ideological commitments to the U.S. One question asks, for example, if a country "publicly supported U.S. Foreign Policy Priorities."
The review revealed a Washington struggle over how far to reduce the U.S.'s role in Europe, without compromising its own military power. Five senior congressional aides, both Republicans and Democrats, said there was a growing bipartisan mistrust of Hegseth’s handling of NATO. One of the aides stated that Republican and Democratic Senators were concerned the Pentagon would announce "a decision which might not be beneficial for NATO or U.S. National Security."
Three people with knowledge of the situation said that Hegseth may propose the same reduction as he had announced in June, i.e. 25,000.
The Pentagon and Hegseth did not respond to written comments. A senior Pentagon official said: "This serious review is designed to be rigorous and consultative."
According to audits by the government and testimony from Congress, there are more than 81,000 U.S. military personnel stationed in Europe. This number fluctuates as troops rotate across Europe on exercises and deployments.
In 2017, four years before Trump took office, the U.S. had an average of 65,000 troops in Europe. This number grew to 74,000 troops during Trump's first term and then to 105,000 under Joe Biden following Russia's invasion of Ukraine. By the time Trump was re-elected in 2025, this number had dropped to current levels.
Trump's battle with NATO is part and parcel of his broader effort to overturn the international order that the U.S. built after World War Two. His administration is challenging institutions, norms, and alliances that have been in place for decades with an "America First" transactional approach that puts the U.S.'s dominance above treaties and multilateral collaboration. Trump's attack on the global justice system was detailed in previous reporting, which included crippling U.S. Sanctions against the International Criminal Court as well as his scrambling American diplomacy through hollowing out U.S. Embassies and threats to both friends and enemies.
TROOPS & TRUST
The majority of allies agreed to Trump's demand for increased defense spending. This turned the potentially explosive NATO summit at Ankara in July into a meeting that Trump described as "very successful".
The Pentagon's six month review is the main uncertainty that hangs over the alliance. Some European officials think that NATO's military leadership could manage a U.S. withdrawal without exposing Europe's vulnerabilities. Some fear that the process will lead to a race for Washington's favour. Officials in Romania and Poland have said they have been lobbying discreetly, but intensely, to keep American soldiers on their territories.
Why do these countries want American soldiers on their soil? George Scutaru is a Romanian expert in defense and the head of New Strategy Center (a Bucharest-based think tank). "Because a human shield is the best deterrent."
The Iran War shows how Washington is still dependent on European geography even when its relations with its allies are strained.
Reports state that Italy denied permission to some U.S. aircraft in late March to land in Sigonella, Sicily, before they headed to the Middle East. By late June, however, over 500 U.S. aircraft had passed through Italian bases. This included 343 aircraft transiting through Sigonella, and 211 aircraft passing through Aviano, in the north of Italy. Many of these aircraft were carrying munitions.
Trump still attacked Italian Prime Minister Giorgia Melons in a post on June 20, saying that "she would not even let us use Italy’s landing strips or airports, which is a great logistics inconvenience." The Italian Government did not respond to an?ask for comment.
Since 1949, NATO is a cornerstone in American power. It helps the U.S. station forces throughout Europe, deter enemies, project military force, and anchor a block of democratic allies. In exchange, Europe received the protection of one of the most powerful militaries in the world, which helped sustain a period of peace and prosperity that was unprecedented in modern history.
This bargain has enjoyed wide support in Washington, irrespective of party affiliation. Trump is not one of them. In his four decades in public life, Trump's position that other countries should not be protected by the United States has been remarkably consistent.
In a 1987 CNN interview, he stated that "Many people are tired of other countries ripping the United States off." Trump stated during his presidential campaign in 2016 that allies must pay up, or else "get out". "And if that breaks up NATO, then it breaks NATO." Trump, in his first term as president, demanded that allies raise defense spending from 2% to 4%. He pushed for the 5% just before returning to his office in 2025.
He told reporters that if they didn't pay he wouldn't defend them.
NATO reports that European allies, including Canada, will spend 2.3% of their GDP combined on defense by 2025. Except for Spain, all of them have committed to spending 5% on security and defense-related investments in 2035.
Kay Bailey Hutchison is a former Republican U.S. Senator who served as Trump’s ambassador to NATO during his first term. She said Trump appears to believe the U.S. benefits more from his relationships with rival powers like Russia and China rather than through alliances, such as NATO. She said, "I have always wanted the President to understand that we need allies if China is our long-term enemy."
Trump, despite his attacks on NATO and the European military establishments that he has funded during his second term, has continued to fund major infrastructure projects. Washington has not backed down from the Naval Station Rota and Moron Air Base in Spain, which Trump called "a terrible NATO partner" at the Ankara Summit.
The U.S. announced in May and June that they would be re-enforcing aircraft facilities at Moron and awarding $400 million worth of construction contracts to Spanish firms to improve and maintain the base for the next decade.
Rota and Moron can be difficult to replace. They provide access to the Atlantic, Mediterranean and North Africa and extend U.S. Military power into the Middle East. The Spanish Prime Minister Pedro Sanchez stated at a press conference during the Ankara Summit that the U.S. had made a "sovereign" decision to deploy American forces in Europe and that Spain has "excellent" military relations with the U.S.
The U.S. invested over $100 million into the expansion of Mihail Kogalniceanu Air Base in Romania. This was done alongside a $2.7 billion Romanian-funded project that will make Mihail Kogalniceanu Air Base the largest NATO base in Europe by 2040, with a capacity for up 20,000 personnel.
Trump criticised then-Prime Minster Keir starmer in March for Britain's lack of support for U.S. attacks on Iran. According to a presentation made in March by a U.S. Air Force group that manages the base infrastructure, the U.S. spends more than $4.2billion on current and upcoming project at seven British air bases. U.S. Bombers have carried out missions against Iranian targets at least from one of these British bases. This reinforces the strategic importance Europe has for U.S. military activities well beyond Europe.
At least a dozen former and current officials from Europe and the U.S., as well as Canada, cautioned Trump that he doesn't have to withdraw formally from NATO in order to cripple the alliance. The anti-NATO rhetoric of Trump alone could signal to Russian President Vladimir Putin that the West was divided and more vulnerable than appeared.
These officials fear that Putin is testing this assumption by a series of sabotage events across Europe, which European nations blame on Russia. In August, there was a drone attack on an airport in Germany and a fire in a Polish drone manufacturing factory.
NATO sent Romanian fighters to intercept a Russian drone which had infiltrated Romanian territory. This was just two days after NATO's visit to Romania's MK Air Base. A Romanian F-16 flying from another base shot it down. In the days that followed, two more drones believed to also be Russian were shot down. A Russian cruise missile then landed in Poland in late July. Poland is another NATO frontline ally.
Denis Gonchar denied that Russia was involved in the incidents which occurred in Germany, Poland, and Romania. He called the provocations "dirty" and attributed them to Ukraine and others who were trying to "drag NATO, the European Union, and Russia into a direct confrontation."
European officials blame Moscow for the increasing brazenness of these incursions, and claim that they are part a campaign to undermine support for Ukraine, and test NATO unity. Marius Lazurca is the national security adviser to Romanian president Nicusor Dan. He said that a drone shot over Romania by a Spanish pilot in a U.S. fighter jet demonstrated NATO solidarity.
Scutaru is a Romanian expert in defense. He said, "It's clear that Russia tests Romania's defence capabilities and NATO response."
What Washington expects from its allies is less clear for many.
Poland and Germany increased their defense spending, but still face the possibility of U.S. troop reductions. Denmark spends a higher share of its GDP on defense than does the U.S., but Trump continues to threaten Greenland. The Federal Foreign Office of Germany said that the U.S. will continue to play an "important role" in Europe's defense as Europe becomes more responsible. The Danish Defense Ministry did not respond to a comment request.
Pentagon officials are exploring ways to punish allies Trump views as being disloyal. U.S. officials revealed in an internal email that was previously published by the U.S. Elbridge Colby, the Under Secretary for Defense Policy, discussed with Spanish officials the possibility of suspending them from NATO if they refused to support Iran strikes. This was despite NATO having no way to suspend members. Allies were braced for a confrontation at the Ankara Summit, only to hear Trump switch from attacking Spain to praising "the tremendous love" that he felt towards NATO.
Look Beyond Canada and Europe
NATO governments do not wait for Washington to provide clarity. Rearmament is taking place at a rate not seen in decades, and in some cases they are looking for alternatives to American technology.
Trump's threats against NATO and Russia's war on Ukraine have been the driving forces behind the increase in European defense expenditure. NATO reported that its European members, Canada and the United States increased their combined defense expenditure by 20% between 2025 and 2015.
Trump said that U.S. Defense contractors would enjoy a windfall. He said, "We'll manufacture it and they're paying for it," at a White House meeting with NATO chief Mark Rutte. "We're going to make a lot of money." Trump said at a White House meeting with NATO chief Mark Rutte in July 2025.
At least eight NATO members, including Canada, Poland and Denmark, as well as Spain, Norway and Turkey, are looking for ways to reduce their reliance on U.S. technology, weapons and defense companies, as concerns grow over the durability of U.S. assistance.
Wendy Gilmour said that such doubts were not surprising. She was a former NATO assistant secretary general in charge of defense investment. She said that many people thought Trump's election was a "fluke" and assumed the U.S. remained a reliable ally. "The second vote feels deliberate and it feels like America is not the exceptional democracy we thought it was.
As they look to reduce their decades-long reliance on U.S. defence firms, Canada and Poland, among others, are purchasing more equipment from non-U.S. companies, including radar systems and jets.
This has caused concern at the Pentagon. Colby, Pentagon's top adviser on policy, wrote in a social media post from July that allies should work with the U.S. Defense Industrial Base "rather than try to replicate or replace it."
Canada, embroiled in an ongoing trade war with Trump offers a glimpse at the tensions that are emerging within the alliance. Three senior Canadian government officials who recently left their posts said they received mixed messages about Canada's attempts to diversify its defense procurement from the Pentagon. Canada selected an Australian Arctic radar system worth $1.7 billion over its U.S. rival in June. Former senior Canadian officials directly involved in the decision stated that the Pentagon supported the selection because the Australian company promised to deliver the Arctic radar system years sooner than its U.S. competitor.
Pentagon officials expressed concerns about Canada's decision to purchase early-warning Radar planes from Sweden rather than the U.S. and to consider buying some Swedish-made Gripen jet fighters instead of additional U.S.-made F-35s. One Pentagon official questioned whether Canada is a "credible" partner in the mutual defence of North America.
Canada's Defense Ministry said in a statement that it has not yet decided if it will buy additional F-35s beyond the first batch expected to arrive this summer, or if they'll pursue alternatives. The ministry stated that the review of the F-35 continues as it works to maximize the economic benefits for Canadian workers and businesses.
Gijs Tuinman was the Dutch Minister of Arms Procurement and Personnel until February. He said that efforts to end dependence on U.S. arms could have significant consequences. He said that he thought anti-Trump sentiment could push some governments in Europe to reconsider their participation in major American defence programs. Experts say this could cost U.S. firms billions.
The risk is enormous. Tuinman told an interview that it was on the verge of happening.
Lockheed Martin, the company that makes the F-35 fighter jet, said it was seeing "strong demand" from NATO member countries for its fighter plane and other products. According to a Pentagon document, Poland and Finland are expected to receive their first F-35s in this year. Canada and Germany will follow.
Gonchar said that the Russian threat is being exaggerated in order to encourage Europeans continue to buy expensive American military gear.
It will take time to untangle Europe from the decades-long military integration with the United States. It takes years to develop manufacturing capacity. The development of most new weapons takes even longer. Many European, American, and Canadian officials said they view the dependence on U.S. supply chains, technology, and political leadership, as a strategic threat for Europe.
"I do not think that a responsible European Leader can place the future security of their country in the United States' hands, as European countries have done, of course, since the end the Cold War," Chris Chivvis said, the senior U.S. Intelligence Officer for Europe during Trump’s first term. "There's been a sea change in Europe."
In her State of the European Union address, delivered on Wednesday, Ursula von der Leyen, President of the European Commission captured the new mood.
In a speech lasting 70 minutes, in which she did not mention the U.S. once, the EU chief warned that the "international rules-based system is fractured" and stated that Europe "must urgently reinvent our partnerships." She then invited Canada to be the EU's "associate members," signaling a closer cooperation on issues such as defense, trade, and others. After the speech, Canadian Prime Minister Mark Carney received a standing applause.
EUROPE REVOLUTIONS
The European governments, at least publicly continue to express their confidence in the Alliance. Portugal, Norway Germany and Spain, four governments who responded to requests for comments, said NATO remains united despite recent tensions. Norway called the U.S. "our most important allie" while Portugal stated that NATO would be impossible without it. A spokesperson for the Federal Foreign Office in Germany said that U.S. contractors continue to account for "a significant share" of German procurement.
Many European officials say that for NATO to be effective in deterring Russia and other enemies, they must believe the U.S. will protect Europe. Recent opinion polls have revealed that a majority of Europeans do not believe that the U.S. will defend Europe, and that a record number dislike Trump and mistrust his country.
According to a Pew Research Center poll conducted in July, China is now seen as more favorable than the U.S. by most of the 36 countries that were surveyed. This includes nine NATO member nations: Canada, France Germany, Greece Italy, The Netherlands, Spain and Sweden.
In an interview, Senator Jeanne Shaheen said, "That is really troubling." She is the senior Democrat of the Senate Foreign Relations Committee, and the co-chairperson of the Senate NATO Observer Group. "They no longer view President Trump as an ally."
According to 12 current and former Western military and government officials, Trump's plans for Greenland have damaged trust the most.
Jody Thomas, Canada’s national security advisor for 2022-2024, said: "This isn't the United States that we knew." "What they are doing is no more reasonable, no longer rational."
In his speech in Davos, Trump said that he would not take control of the Danish territories by force. He still wants it. In August, he posted a photomontage on his social media page, which showed him towering over the mountains and houses of Greenland, with the words "Hello Greenland!"
(source: Reuters)