The Trump administration is considering an ultimatum for the UK over the Falkland Islands, according to reports, with US officials exploring ways to encourage London to increase defence spending.
Pentagon officials are understood to be reviewing Nato allies’ commitment to a widely cited goal of spending 5% of GDP on defence, with the UK set to receive “special attention”, a senior US official told The Telegraph.
US Pressure tied to Nato Spending
The US is reported to believe the UK did not increase its defence investment enough in June, and is now looking for mechanisms to incentivise further spending by the prime minister.
The official said the UK would receive particular focus because of its “potential” and that the administration planned to continue efforts aimed at getting the UK to step up “in a major way”.
The report also suggests that a change in America’s position on the UK’s sovereignty claim over the Falklands is being considered as one possible lever, after Donald Trump previously raised the issue. The official said discussions were “candid” and that “nothing is being ruled out” on options intended to encourage the burden-sharing the US wants.
UK says Sovereignty Claim is “Unwavering”
The UK government responded by saying its position on the islands is “long-standing and unwavering”, and that the Falklands will remain a British Overseas Territory in line with the wishes of the islanders.
The Treasury said on Friday that chancellor John Healey’s first budget would not set out a timetable for when the UK would meet the target of allocating 3% of GDP to defence. Healey resigned as defence secretary in June, citing the view of Sir Keir Starmer, then prime minister, that he was unable to commit the resources needed to defend the country amid rising threats, while the Treasury was unwilling to do so.
The US official described the UK’s June defence investment plan as “a step in the right direction”, but said it was not sufficient, adding that the scale of challenges facing the US and its allies required the UK to step up in “major, fundamental” ways. The official said the administration strongly encouraged the UK to do likewise.
April Threat and Background with Argentina
The renewed US demand follows a threat made in April, after a leaked internal Pentagon email indicated Washington could review Britain’s claim to the Falklands, framed as retaliation for a lack of support in the Iran war.
The Foreign Office has previously considered a shift in the US position, but treated it as a “hypothetical scenario”.
The Falklands are administered by the UK, although Argentina also claims them. Argentina’s president is described as an ally of Mr Trump. The report notes that Downing Street said earlier threats left the Falklands’ sovereignty “not in question”, with Conservative leader Kemi Badenoch dismissing the possibility of a US policy review as “absolute nonsense” and comparing it to Mr Trump’s earlier threat to annex Greenland.
Admiral Lord West of Spithead, a former commanding officer of HMS Ardent which was sunk during the 1982 conflict, previously told The Independent that losing US recognition would have “no impact” militarily, adding that the islands’ security would not be affected by whether the US recognised the UK claim.
The Independent said it had approached the White House and Downing Street for comment.
A UK government spokesperson quoted by Sky News said: “The UK position on the Falkland Islands is long-standing and unwavering: they are and will remain a British Overseas Territory in line with the wishes of the Falkland islanders.” The spokesperson added that the UK plays a leading role in Nato and is strengthening collective defence in Europe, describing itself as Nato’s third largest cash spender on defence and the only European Nato member to commit its nuclear deterrent to the alliance.
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30 August 2026
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