Trump threatens 'delinquent' Nato allies with trade blocks if they don't meet military spending targets

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Donald Trump said the US would punish members of the 29-member Nato alliance with trade blocks if he has determined those countries aren't "fulfilling their commitments" to military defence spending.

The president also failed to confirm that the US would defend those countries if they're attacked.

Seated next to French President Emmanuel Macron at the Nato summit in London, Mr Trump said that the US will "deal with" countries "from a trade standpoint" or "in a different way" if they're "delinquent" in their defence spending commitments.

Mr Trump added that "it's not fair" that Nato allies help defend countries that haven't committed at least 2 per cent of their spending on defence.

"If something happens, we're supposed to protect them? It's not really fair", he said. "If they don't want to, I'll have to do something with respect to trade. With trade, I have all the cards."

Mr Trump has previously complained that the US carries too much of Nato's defence burden, urging allies to meet defence spending goals while pushing his "America First" agenda.

The US spends 3.4 per cent of its GDP on defence, more than 1 full percentage point above Greece (2.22 per cent) and the UK (2.15 per cent). More than 20 other Nato countries fall below the 2 per cent guideline, but military spending has increased significantly over the last decade, prior to the president taking office.

Last month, Mr Macron described the alliance as going through a "brain death" and nearing obsolescence. At his appearance in London Mr Trump responded, saying Mr Macron's statement is insulting to Nato's military membership.

"When you make a statement like that, that is a very, very nasty statement", Mr Trump said.

Mr Trump had proposed retaliatory tariffs on French imports after the country's digital tax proposal against US companies like Amazon, Facebook and Google.

Sitting next to Canadian Prime Minister Justin Trudeau, Mr Trump said Canada was "slightly delinquent" in its military spending goal — but Mr Trudeau defended its spending, citing recent investments in fighter jets and its naval fleet.

"Canada has been there for every Nato deployment", Mr Trudeau said. "We have consistently stepped up, sent our troops in harm's way. ... The United States and all Nato allies know that Canada is a solid, reliable partner, and will continue to defend Nato and continue to defend Nato and our interests."