President Donald Trump surprised the White House press corps on Monday by unveiling what he called a “blockbuster” agreement with NATO for the purchase of American-made military hardware.
Speaking alongside members of his Cabinet in the Oval Office, Trump outlined the deal, which will see NATO member nations significantly increase their reliance on U.S. defense contractors in the coming decades. The agreement is aimed at strengthening their own military capabilities while countering continued Russian aggression in Ukraine.
“We’ve made a deal today where we’re going to be sending them weapons and they’re gonna be paying for ’em,” Trump told his advisors. “The United States will not be having any payment made. We are not buying it, but we will manufacture it and they are going to be paying for it.”
Last month, both sides held a high-stakes meeting to discuss the future of U.S. defense spending for NATO allies. Under the new agreement, all participating nations, except Spain, have committed to increasing their defense spending to 5% of their gross domestic product. That amounts to “more than a trillion dollars a year,” Trump said.
“These are wealthy nations,” he went on. “They want to do it, and they feel very strongly about it, and we feel strongly about it too. But we’re in for a lot of money and we don’t want to do it anymore.”
As part of Monday’s agreement, the U.S. will supply NATO allies—including Germany—with “some of the best” weapons currently in production. Germany, in turn, will provide both defensive and offensive missiles to Ukraine, which is bracing for some of the most intense Russian bombardments since the war began.
Trump credited NATO Ambassador Matt Whitaker for playing a key role in guiding the deal to completion. “You better do a good job, Matt,” he said, looking at his aide.
A source familiar with the agreement told Axios that the deal represents a $10 billion investment in U.S.-manufactured military equipment. The artillery headed for Ukraine will include missiles, air defense systems, and ammunition.
The announcement comes as Trump has shown increasing frustration with Russian President Vladimir Putin, whom he recently accused of delivering nothing but “bulls**t” during their frequent phone calls over the past several months.
On Monday, Trump issued a 50-day ultimatum to Russia to negotiate an end to the war or face sweeping “secondary tariffs” of 100% on any country doing business with Moscow—a move that could significantly disrupt global oil markets, particularly for major buyers like China and India.
Trump said Monday that whenever he speaks to Putin, “I always hang up and say, ‘Well, that was a nice phone call.’ And then missiles are launched into Kyiv or some other city. And after that happens three or four times, you say, ‘Talk doesn’t mean anything.’”