Japan weighs reclassifying energy and AI as defense spending amid Trump pressure

Japan is considering reclassifying energy security and artificial intelligence investments as defense spending today, amid pressure linked to Donald Trump, Nikkei Asia reports. The rethink could bolster headline defense outlays without fully expanding traditional arms procurement, a timely shift as Tokyo pursues its 2% of GDP target by fiscal 2027. It also positions Japan to answer likely burden-sharing demands from Washington if U.S. policy hardens, according to Nikkei Asia.

Under the proposal, projects tied to energy security and AI R&D would be counted toward defense, potentially easing budget battles across ministries as officials and ruling coalition lawmakers study accounting frameworks and political implications, Nikkei Asia says. Watch for signals in upcoming budget guidelines, potential Cabinet statements clarifying categories and totals, and any U.S. reaction. [Developing. This article will be updated.]