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A few days ago the President Donald Trump threatened Spain with new tariffs if Madrid did not increase defense spending to 5% of GDP. It remains to be seen whether these tactics will prove effective, but one thing is certain: the president has proven even more effective than in his first term when it comes to getting other countries to live up to their commitments. This fact is especially noticeable when it comes to defense spending.
In 2006 America's NATO allies agreed to spend 2% of their GDP on defense. After years of little progress, the Obama administration negotiated a renewed agreement in 2014 to meet the goal by 2024. However, when Trump first took office in 2017, only five of 28 countries had reached that mark.
The President and his national security team, including myself, then put a lot of pressure on our allies to live up to their commitments. By 2021, the number of deliberating NATO members has doubled and allied military spending has increased significantly.
President Donald Trump speaks with Secretary of State Marco Rubio at a news conference following the NATO summit on June 25, 2025 in The Hague, Netherlands. High on the summit agenda was a new defense investment plan that raised the defense spending target to 5% of GDP. (Omar Havana/Getty Images)
Fast forward to 2025. Thanks to the ongoing war in Ukraine and Europe's fear of Vladimir Putin, Trump has managed to achieve what many thought impossible: convincing our NATO allies to spend a whopping 5% of their GDP on defense!
In the economic space, the White House has similarly persuaded other countries to honor past commitments when it comes to trade, using tariffs and other means. This should be more obvious when it comes to the future. trade negotiations with China.
The communist state has reneged on its commitments and violated numerous agreements for decades, from intellectual property theft to currency manipulation to unfair subsidies to Chinese companies. For example, during Trump's first term, the PRC failed to acquire the additional US$200 billion in additional exports it had promised.
China may be the most notorious country when it comes to defaulting on commitments, but it is not the only one. Many of America's friends also bear responsibility, especially when it comes to deals made with American companies. I saw this during my time working in the private sector.
This is enough of a problem that the House Appropriations Committee recently wrote about in its August 2026 report. national security spending billDepartment of State and Related Programs that it “remains concerned by reports of commercial disputes between United States entities and host governments…”
The committee noted “particular concern” about “disputes over real property confiscated, retained or expropriated by foreign governments.” The report even mentioned the governments of “the Democratic Republic of the Congo, Djibouti, Honduras, Kuwait and Mexico.”
Mexico's state-owned oil company Permex allegedly owes US contractors $1.2 billion. Kuwait is allegedly accused of failing to pay the US on its financial obligations – including the Al Zour refinery, one of the largest oil refining projects in the Middle East – where it has reportedly left money unpaid to the US and other contractors.
And, according to State DepartmentMany U.S. companies operating in Honduras have “expressed concerns about politically motivated threats of criminal prosecution and expropriation of private assets.”
Secretary of State Marco Rubio speaks to the media at Ben Gurion International Airport as he flies from Tel Aviv to Qatar after an official visit, near Lod, Israel, September 16, 2025. (Nathan Howard/Pool Photo via AP)
The committee concluded its report by directing Secretary of State Marco Rubio to “use various tools of diplomatic engagement to… facilitate the timely resolution of such disputes.” Such action, of course, begins with American diplomats abroad.
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US ambassadors Those already in foreign capitals facing such problems must put pressure on host governments at all levels. So are the people who are running for such appointments in the Senate – starting with Amer Ghalib, who testified at a hearing Thursday that he would be America's next ambassador to Kuwait (currently the only vacant position on the House committee's list of nominees).
In addition, it would be very useful to hold separate congressional hearings on the broader issue of foreign governments allegedly backtracking on their agreements with American companies.
The administration has appropriately talked about protecting American jobs, preserving American innovation, and ensuring fairness when it comes to global trade and business. We have seen the president's team act on these instincts. And given the business backgrounds of many members of the administration, they undoubtedly understand the challenges that American companies face in resolving business disputes with foreign governments.
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Just like the President did this year after receiving our NATO allies To meet its spending commitments when it comes to strengthening the alliance, applying the same focus and energy to helping U.S. firms resolve their disputes with foreign governments will go a long way in helping U.S. companies and workers.
If our allies and friends want to benefit from a partnership with the United States, they must also live up to their responsibilities—to our country, our businesses, and our workers. This is another good way to put America first and promote it. US economic growth and prosperity.
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