Will Defense Costs Rise Under Trump Pressure? Japanese Prime Minister Says "Could Exceed 2% of GDP"

Outlook for Defense Spending After the 2027 Fiscal Year

Japanese Prime Minister Shigeru Ishiba said on the 17th, "Considering the security environment, as a result of accumulated efforts, if necessary, (defense spending) could exceed 2%."

Prime Minister Ishiba made this remark while attending the House of Representatives Budget Committee on the same day. In a situation where the Donald Trump administration in the United States is demanding increased defense spending from various countries, he indicated that defense spending could exceed 2% of the Gross Domestic Product (GDP) after the 2027 fiscal year (April 2027 to March 2028).

Shigeru Ishiba, Prime Minister of Japan Yonhap News

Earlier, on the 12th, Prime Minister Ishiba stated in the House of Councillors that the existing defense spending policy would be maintained until the 2027 fiscal year and that future plans had not been decided, but a markedly different statement came just five days later. The Japanese government revised the three major security documents in 2022, deciding to raise defense spending, which is about 1% of GDP, to 2% by the 2027 fiscal year.

Although President Trump did not demand an increase in Japan's defense spending or the cost of stationing U.S. forces in Japan during the summit with Prime Minister Ishiba on the 7th (local time), he expressed expectations at a press conference that "it will increase further through today's discussions." The joint statement between the two countries specified "strengthening Japan's defense capabilities after the 2027 fiscal year," which is interpreted as Japan effectively promising the U.S. an additional increase in defense spending.