German Chancellor Friedrich Merz has countered recent criticism from U.S. President Donald Trump regarding NATO allies' defense contributions by emphasizing Germany's significant new investments in its armed forces.

The remarks serve as a diplomatic rebuttal to Washington's ongoing pressure on European members to increase their financial and military commitments to the alliance.

The exchange occurs against a backdrop of heightened transatlantic friction.

NATO Secretary-General Mark Rutte recently confirmed that the United States has immediately reduced its financial contributions to the alliance's crisis response forces.

This decision has triggered a scramble among member states to cover the resulting shortfall, intensifying debates over burden-sharing within the bloc.

Merz's comments follow his earlier characterization of recent tensions with Trump over Iran and trade issues as a 'misunderstanding.' By highlighting Germany's domestic defense spending, Berlin aims to demonstrate its commitment to collective security while navigating growing European frustration with U.S. policy shifts.