In a statement, NATO leaders approved a higher defence spending target of 5 percent of GDP by 2035, from the current goal of 2 percent of GDP, in response to urgings from Trump and amid fears over international security after Russia's 2022 invasion of Ukraine.
"United in the face of profound security threats and challenges, in particular the long- term threat posed by Russia to Euro-Atlantic security and the persistent threat of terrorism, Allies commit to invest 5 percent of GDP annually on core defence requirements as well as defence-and security-related spending by 2035," the statement said.
'An attack on one is an attack on all'
"We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all," the Hague Summit Declaration added.
The 32-nation alliance heeded a call by Trump for other countries to step up their spending on defence to reduce NATO's reliance on the United States, the Reuters news agency reported.
NATO Secretary-General Mark Rutte acknowledged that it was not easy for European countries and Canada to find the extra money, but said it was vital to do so, according to Reuters.
"There is absolute conviction with my colleagues at the table that, given this threat from the Russians, given the international security situation, there is no alternative," the former Dutch prime minister told reporters in his home city, as quoted by Reuters.
The new spending target is expected to be achieved over the next 10 years.
Allies would spend 3.5 percent of GDP on core defence, such as troops and weapons, and 1.5 percent on broader defence projects such as cybersecurity and infrastructure.
Before the summit, Trump said of fellow NATO members: "We're with them all the way."
Poland was represented at the summit by officials including President Andrzej Duda, Foreign Minister Radosław Sikorski and Defence Minister Kosiniak-Kamysz, state news agency PAP reported.
Kosiniak-Kamysz on Tuesday supported the plan to significantly boost defence commitments across the alliance, saying that Poland was spending more on defence than any other NATO member.
"Fifty percent of that spending goes to transformation and modernisation of our army," he told reporters.
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Source: Reuters, IAR, PAP, nato.int