European freeloading is “pathetic,” Defense Secretary Pete Hegseth fumed in a leaked Signal chat with Vice President J.D. Vance earlier this year. Vance had just complained about bailing out Europe again; a sentiment long echoed by President Donald Trump. That frustration now finds vindication in Brussels.
In March 2025, Poland’s Prime Minister Donald Tusk, formerly President of the European Council, offered a blunt assessment of Europe’s defense dependency. In a moment of raw honesty, the leader of a country that spends over 4.1% of its GDP on defense and is preparing to implement universal military training for adult men called for a wartime mindset across the continent.
Validating Trump, he said:
Five hundred million Europeans are begging 300 million Americans for protection from 140 million Russians who have been unable to overcome 50 million Ukrainians for three years.
One of the most significant victories of President Donald Trump's foreign policy unfolded this week at NATO headquarters. Nearly all NATO member nations, except Spain, agreed to increase their defense spending, committing a minimum of five percent of their GDP to national defense. This landmark decision affirms a central tenet of Trump's long-standing worldview: that the United States should not bear a disproportionate share of global security costs.
Trump has been remarkably consistent on this issue for decades. As far back as a televised interview with Oprah Winfrey in the 1980s, he argued that the United States was being taken advantage of by allies and trading partners alike. Whether addressing tariffs, trade deficits, or military burden-sharing, Trump has warned that America's wealth and security infrastructure were subsidizing other nations, often at the expense of American workers and taxpayers.
Nowhere is this more evident than in the structure of the NATO alliance, where many of its member countries, most of which are European, have long failed to meet their financial commitments. Wealthy nations such as Germany, France, Italy, and even the United Kingdom, which competes with the United States in global markets, have for years underfunded their militaries while relying on the U.S. security umbrella. Trump's insistence that these nations carry their weight is not only justified, it is long overdue.
Mainland Europe, which operates under a common currency and shares a combined population and GDP nearly equal to that of the United States, has long had the means to fund its own defense. The creation of the euro in 1999 was intended to increase trade efficiency by eliminating exchange rate complexities among member states. Before the euro, a French wine exporter to Italy had to deal with francs and lira, often using the U.S. dollar as an intermediary. With the euro, cross-border European trade became as seamless as domestic commerce within the United States.
What was less apparent at the time was the euro's emergence as a viable reserve currency. It quickly became the second most widely held currency by central banks worldwide. NATO's Article 5 security guarantees offered European nations peace of mind, encouraging countries around the globe to diversify away from the dollar and embrace the euro in trade and reserves. Trump has repeatedly pointed out that the United States enabled this geopolitical shift while silently absorbing the strategic and financial consequences. His argument is not without merit.
Another long-standing Trump grievance has been NATO's lopsided burden-sharing. The United States maintains a vast network of military bases across Europe, injecting billions into local economies while keeping troops and weapons on high alert. This American military presence guarantees European security, essentially at no cost, while U.S. taxpayers bear the financial burden. Meanwhile, many of the wealthiest NATO countries have chronically failed to meet even the previously agreed-upon two percent GDP target for defense spending.
The imbalance is even more striking when considering geography. Most NATO flashpoints are on European soil due to land borders with hostile or unstable regimes. By contrast, the United States is blessed with two peaceful neighbors, Canada and Mexico, neither of which poses a military threat. Canada, a NATO and G7 member, benefits from this elite Western alliance while contributing relatively little in terms of resources. Additionally, the vast oceans that separate the U.S. from Eurasia make an invasion of American soil almost impossible.
Despite nearly eight decades of NATO's existence, Article 5—the collective defense clause—was invoked only once, following the September 11, 2001 attacks. In response, NATO allies joined American forces in Afghanistan and remained there for nearly two decades, shouldering both combat and peacekeeping roles. Some countries, notably the United Kingdom, also stood with the United States during the Iraq War despite the fact that Article 5 did not apply. Their participation underscored the alliance's political value beyond treaty obligations. Trump understands NATO's importance and the strategic value of military power.
Fresh off a series of precision strikes on Iranian nuclear facilities, actions that led to a de-escalation of hostilities between Israel and Iran, Trump has shown the world that he is not afraid to act decisively. Trump's show of strength, unlike the passive actions of NATO member countries other than the United States, sent a clear signal to adversaries like Russia and China that American power is real and will be used.
European commentators are already referring to this approach as the "Trump Doctrine," defined by bold intent and preemptive force. His actions have invited criticism and rebuke from voices friendly to European nations. One writer, Ahmet Davutoğlu, noted: "By failing to consult his allies before bombing Iran's nuclear facilities, U.S. President Donald Trump has reduced NATO to a passive observer and signaled a dangerous diplomatic shift. The alliance's fate – and the future of global stability – will hinge on whether European leaders push back." The implication was clear: NATO had been sidelined.
Trump's demand for increased NATO spending also has strategic economic implications. The military-industrial complex thrives when allied nations purchase American-made weapons. In many cases, no other country can match the U.S.'s defense technology. This was evident when the United Kingdom ordered ten F-35 fighter jets, each capable of carrying a nuclear payload. It marked a significant shift in British defense planning, signaling preparation for a potential future conflict that would require nuclear readiness.
When Trump first visited NATO headquarters during his initial term, he was met with snickers and smirks as he chastised allies for underfunding their militaries. That ridicule has not aged well. This week, nearly every leader in the alliance acknowledged his warnings and agreed to his terms.
What began as a lonely crusade has now culminated in a historic realignment. After decades of neglect, NATO is finally moving toward equitable burden-sharing. Trump did not just win a policy debate—he reshaped the alliance itself.
🗞️ Most Read Stories Of The Week
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2. AOC, The Blue Jean Baby Queen—Editorial Board, TIPP Insights
3. Iran Is Headed Toward Regime Collapse—Nouriel Roubini, Project Syndicate
4. Trump’s Preemptive Power Play To Preserve Peace—Editorial Board, TIPP Insights
5. Litigious Left’s Losing Lawfare—Rajkamal Rao, TIPP Insights
6. India Wants To Weaponize Water To Whip Warlords—Editorial Board, TIPP Insights
7. Regressive Ranked-Choice Racket Redefines Democracy—Editorial Board, TIPP Insights
8. It Doesn’t Matter If Iran Can Build a Bomb. It Matters If America Has the Guts to Bomb It, Again.—Victor Davis Hanson, The Daily Signal
9. Another One Bites The Dust As SCOTUS Invalidates Injunction Insanity—Editorial Board, TIPP Insights
10. Uncertainty Grows Over Iran’s Missing Uranium Fuel—TIPP Staff, TIPP Insights
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📅 Key Events This Week
🟩 Monday, June 30
- 09:45 – Chicago PMI (Jun)
Regional gauge of business activity in the Midwest.
🟨 Tuesday, July 1
- 09:30 – Fed Chair Powell Speaks
May offer signals on rate direction amid trade uncertainty. - 09:45 – S&P Global Manufacturing PMI (Jun)
Tracks national manufacturing performance based on surveys. - 10:00 – ISM Manufacturing PMI (Jun)
A leading measure of factory activity across the U.S. - 10:00 – ISM Manufacturing Prices (Jun)
Indicates input cost pressures for manufacturers. - 10:00 – JOLTS Job Openings (May)
Measures total job vacancies; key labor market signal.
🟦 Wednesday, July 2
- 08:15 – ADP Nonfarm Employment Change (Jun)
Private-sector job growth estimate ahead of official payrolls. - 10:30 – Crude Oil Inventories
Weekly update on U.S. oil stockpiles; affects energy markets.
🟧 Thursday, July 3 (Early Close at 13:00 ET)
- 08:30 – Average Hourly Earnings (Jun)
Measures wage growth; closely tied to inflation outlook. - 08:30 – Initial Jobless Claims
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Percentage of the workforce currently unemployed. - 09:45 – S&P Global Services PMI (Jun)
Business conditions in the U.S. services sector. - 10:00 – ISM Non-Manufacturing PMI (Jun)
A broader measure of activity in the services industry. - 10:00 – ISM Non-Manufacturing Prices (Jun)
Trends in input costs within the service economy.
🟥 Friday, July 4
- Holiday – U.S. Independence Day
All financial markets closed.
