Nikkei reports Japan, under pressure from the Trump administration to lift allies' defence spending to 3.5% of GDP, is considering from next fiscal year reclassifying more spending categories — including energy outlays and parts of development aid — as defence expenditure. Japan's FY2026 defence budget is about 1.3% of projected GDP; including related items rises to roughly 1.5%. Reaching a 3.5% benchmark would require an additional roughly ¥15 trillion (about $96 billion) per year.