Defense Secretary Pete Hegseth fired a warning at NATO allies in Brussels, demanding they shoulder more of Europe’s conventional defence. He highlighted the U.S.’s decision to pull 5,000 troops from Germany and cancel a long‑range fire battalion, framing the cuts as a test of solidarity. The move comes a week before the annual NATO summit.

Hegseth blasted European partners for refusing U.S. access to bases to strike Iran, calling the debate a “legal labyrinth” that undermined a shared security agenda. He warned that if allies fail to meet defense spending targets, U.S. contributions to NATO would shrink, turning the alliance into a two‑sided bargain.

The U.S. also plans to withdraw a carrier strike group and all cruise‑missile‑capable submarines from the NATO Force Model, a move that could reshape force‑generation timelines. European officials urge close coordination to avoid gaps. Hegseth’s remarks signal a sharper U.S. push for a more cost‑effective, defense‑heavy partnership.

These actions come after President Donald Trump’s spat with German Chancellor Friedrich Merz, which led to the troop withdrawal. Analysts say the U.S. is recalibrating its European footprint to free resources for the Indo‑Pacific. Investors watching defence contractors will gauge how reduced U.S. presence affects future procurement budgets and alliance spending patterns.