The US says Europe needs.to pay more to Nato - so how much is it spending?

With President Donald Trump entering office for the second time, Nato spending is once again under scrutiny as the United States warns European countries must dig deeper into their pockets.

- ALICJA HAGOPIAN T

Defence secretary Pete Hegseth said on Wednesday the US would “no longer tolerate an imbalanced relationship” with allies on Ukraine, and warned that other Nato Members needed to spend more on defence.

It comes as Mr Trump announced he had a “highly productive” phone call with Russian president Vladimir Putin, which he said would initiate negotiations to end the war in Ukraine.

Other Nato nations have criticised leaving Ukraine and President Volodymyr Zelensky out of the call, with the UK’s defence minister John Healey reiterating that “there can be no negotiation about Ukraine, without Ukraine”.

“Let’s not forget, Russia remains a threat well beyond Ukraine,” added Mr Healey.

The United States is tied with Germany as the biggest net contributor to the Nato common budget – yet the cost is a drop in the ocean in terms of domestic product (GDP), compared to other countries.

How much do countries pay Nato?

The North Atlantic Treaty Organisation (Nato) budget for 2025 is approximately £3.8bn, but is paid for at different rates by each of the 32 member states.

The most recent member of Nato is Sweden, which joined in 2024. Ukraine is not a member of Nato, but has repeatedly sought membership since Crimea was annexed by Russia in 2014.

The Nato budget is divided into three main parts: the civil budget, military budget, and Nato Security Investment Programme.

When looking specifically at the Nato common budget, to which countries make direct contributions, Germany and the United States are both the highest payers overall.