White House takes thinly veiled shot at Australia on defence spending

The White House has taken a thinly veiled shot at Australia on a key issue, straining Washington’s relationship with Canberra.

White House press secretary Karoline Leavitt has taken a thinly veiled shot at Australia, saying if European countries can agree to hike defence spending, then US allies in the Indo Pacific ”can do it as well”.

The comment came after all 32 NATO members agreed to dramatically hike their defence budgets to 5 per cent of GDP.

It is a major win for Donald Trump, who has threatened to drop US military support for Europe if it did not splash more cash.

For Anthony Albanese, it has only added to mounting pressure to invest more in Australia’s security, with the Coalition calling for a target of 3 per cent of GDP.

Speaking to reporters at the White House overnight, Ms Leavitt was asked how the NATO result might affect defence negotiations with allies in the Indo Pacific.

White House press secretary Karoline Leavitt says US allies in the Indo Pacific should be able to boost their defence budgets. Picture: Saul Loeb / AFP

“I mean, look, if our allies in Europe and our NATO allies can do it, I think our allies and our friends in the Asia-Pacific region can do it as well,” she said, responding to an Australian journalist.

“But as for our specific relations and discussions, I will let the President speak on those.”

The Prime Minister and his cabinet have resisted Washington’s call to boost the defence budget to 3.5 per cent of GDP, arguing Australia would first establish its needs and then fund accordingly.

But it is a departure from how governments have approached it in the past – generally, a percentage of GDP was used as an indicator of what the budget should be.

The government’s line has also made Canberra an outlier in the West, with critics pointing out Australia has China as its main regional rival.

Fronting media on Friday, Mr Albanese responded to Ms Leavitt’s comment.

The Albanese government is resisting Washington’s call to boost defence spending to 3.5 per cent of GDP. Picture: NewsWire /Philip Gostelow

“We have lifted our spending,” he said.

“We are providing for our defence investment, including $57bn of additional investment.

“I have said very clearly, we will invest in the capability that Australia needs.”

Earlier, opposition defence spokesman Angus Taylor said Australia needed to spend more because “authoritarian regimes around the world” are “flexing their muscles”.

“We’re seeing it, of course, with Russia, we have seen it with Iran and their proxies,” he told the ABC.

“We’re seeing it with the military build-up of the Chinese Communist Party and all of this means we are in a more uncertain world than at any time since the Second World War.

“And so it’s essential Australia be in a position to stand on its own two feet alongside our allies like the United States and the UK and that does mean we have to spend more on defence.”

The Coalition’s proposed 3 per cent increase is still tens of billions short of what Washington has asked for.

US Defence Secretary Pete Hegseth earlier this month warned of an “imminent” threat from China in the Indo Pacific.

US Defence Secretary Pete Hegseth (left) has warned of an ‘imminent’ threat from China to the Indo Pacific Picture: AFP / John Thys

“Let me be clear, any attempt by Communist China to conquer Taiwan by force would result in devastating consequences for the Indo Pacific and the world,” Mr Hegseth told the Shangri La Dialogue.

“There’s no reason to sugar-coat it. The threat China poses is real and it could be imminent.

“We hope not but certainly could be.”

Speaking with Deputy Prime Minister Richard Marles on the sidelines of the conference, Mr Hegseth called on the Albanese government to lift defence spending to 3.5 per cent of GDP.

It ignited a major debate in Canberra and fuelled criticisms that Australia was ill-prepared to defend itself against an increasingly aggressive China.

While the Albanese government has committed record cash for the defence budget, much of it would not kick in until after 2029.

With Australia itself predicting a major global conflict by 2034 and some analysts warning of a US-China conflict before 2030, critics have argued the money is not flowing fast enough and instead tied up in longer-term projects at the cost of combat readiness.

Originally published as White House takes thinly veiled shot at Australia on defence spending