Anthony Albanese has pushed back on calls for Australia to lift its defence spending, despite mounting pressure from the US to do so.

NATO allies agreed to lift spending on defence to five per cent of national gross domestic product after talks in the Netherlands, following calls by US President Donald Trump for the boost.

The increase has increased pressure on other US allies to do the same, with White House press secretary Karoline Leavitt saying countries like Australia should follow suit.

“If our allies in Europe and our NATO allies can do that, I think our allies and our friends in the Asia Pacific region can do it as well,” she said.

The federal government has agreed to lift its defence spending from two per cent of GDP to 2.3 per cent by 2033/34.

Despite appearing frustrated by repeated questions on whether Australia should further increase its defence budget, the prime minster said the current plan – which was taken to the federal election – will be followed through.

“What we’re doing is making sure that Australia has the capability that we need. That’s what we’re investing in,” he told reporters in Sydney on Friday.

“We have increased our defence investment.

“We’ve increased it by $57 billion over the medium term, and by more than $10 billion in the short term as well.”

The lone hold-out on NATO nations’ five per cent increase was Spain, which said it could not meet the pledge.

Mr Trump warned Spain that its exports could be slapped with fresh tariffs by the US if it didn’t commit to the security pact’s defence commitment.

Asked if he was concerned Australia could face a similar threat from the president, Mr Albanese played down the prospect.

“There’s a big focus on Spain at this area of East Hills today (where the press conference took place),” he joked.

“We will invest in whatever capability we need. When it comes to economic issues, I  met with the Treasury Secretary of the United States just a week ago.

“I’m not going to comment on things between Spain and the United States. What my job is is to look after Australia’s national interest, that includes our defence and security interests.”

Meanwhile, Foreign Minister Penny Wong is preparing to fly to the US for talks with US Secretary of State Marco Rubio.

The meeting with Mr Rubio will be part of talks between the foreign ministers of Quad alliance nations, which also include Japan and India.

Quad foreign ministers previously met in January, with the four-country alliance focusing on issues in the Indo-Pacific.

The federal opposition has also been vocal in calling for a boost to the defence budget amid global uncertainty.

Opposition defence spokesman Angus Taylor said an increase of defence spending above 2.3 per cent of GDP was needed.

“We do need to get our defence spending up to meet our own plans and to make sure that we have the agility and the delivery that is absolutely necessary in this new world,” he told ABC Radio.

“(The country’s defence strategy) is not properly funded at a time when authoritarian regimes are flexing their muscles in ways they haven’t since the Second World War.”

Source: AAP