Japan is to sidestep 3.5% defence spending target despite US pressure, according to Asahi

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Japan is to sidestep 3.5% defence spending target despite US pressure, according to Asahi

Japan's Finance Minister Katayama says can't comment whether we would need extra budget or not, adds even if needed, the extra budget would be limited to urgent policy priorities

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Context

Episodes in which an allied government publicly resists a defence-spending target pressed on it have tended to play out as prolonged negotiations rather than clean breaks, with the alliance intact but the burden-sharing argument recurring at each summit and budget cycle. The actors here carry known form: Washington has repeatedly sought higher allied outlays as a share of GDP, and Tokyo has historically preferred its own spending trajectory, citing constitutional and fiscal constraints, so this reads as continuity rather than rupture. The transmission channel, such as it is, runs through defence-sector orderbooks and the yen's safe-haven sensitivity to alliance friction, both of which have tended to react modestly to signalling of this kind unless the dispute escalates into trade or security conditionality. What separates cases is whether the pushback is rhetorical positioning ahead of a meeting or a substantive budget decision; a reported intention via domestic press sits in the former category. The follow-ons worth tracking are any US response tying the issue to tariffs or force posture, and the next Japanese defence budget documents, which determine whether the target is formally sidestepped or merely deferred.

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