US threatens the UK as Trump issues new ultimatum over the Falkland Islands

The Falkland Islands are at the centre of a major political furore once again, according to reports.

Donald Trump's administration is alleged to have ordered the UK to increase its defence spending, otherwise, the US will withdraw it's support for Britain's sovereignty there.

It's not the first time that reports of this supposed threat have reared their head, suggesting America is willing to push on this pressure point to get Prime Minister Andy Burnham to reexamine the budget.

Back in April - before the debate around the Falkland Islands erupted at the 2026 World Cup due to Argentina's antics - a leaked Pentagon email outlined the US' alleged plans.

Due to Keir Starmer's reluctance to get involved in the Iran war, it was warned that Trump might reassess diplomatic support for European 'imperial possessions', including the Falklands.

Burnham has reportedly been issued an ultimatum by the US (Henry Nicholls / POOL / AFP via Getty Images)

This would likely cause a monumental breakdown in the UK-US alliance, which has been a point of pride between both countries for decades.

Now, it seems that America aren't backing down from this threat, as a senior US official told The Telegraph that Burnham has been issued something of an ultimatum.

It comes after the Financial Times reported yesterday (28 August) that UK Chancellor John Healey intends to shelve his target for defence spending to reach 3% of GDP by 2030 when he delivers his first budget in October.

Citing government insiders, the publication claimed that larger decisions over increasing defence spending will be delayed until a Treasury spending review next year.

Healey also told Sky News that 'fiscal discipline' was the first priority for any chancellor, while acknowledging the financial pressures created by global conflicts and rising security threats.

At last year's NATO Summit, allies committed to investing 5% of GDP annually on defence by 2035.

"Our investments will ensure we have the forces, capabilities, resources, infrastructure, warfighting readiness, and resilience needed to deter and defend in line with our three core tasks of deterrence and defence, crisis prevention and management, and cooperative security," the pledge said.

The Falklands are a British Overseas Territory (Getty Stock Photo)

Healey quit his role as Defence Secretary in June and referenced a lack of funding in his resignation letter to Starmer.

"This new era for defence required further investment through the Defence Investment Plan (DIP)," it stated.

"The excellent and extensive cross-government work that completed in January-overseen by you, me and the Chancellor - confirmed the scale of the challenge and the rising demands on defence.

"Since then, you have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats."

The US are now reportedly planning on putting pressure on NATO members which don't fulfil the alliance's five per cent spending pledge, such as the UK.

'Nothing is being ruled out'

The Telegraph reported that a senior official claimed Britain will receive 'special attention' when the White House take a look at if its allies are satisfying their commitments to NATO.

While the US wants Britain to become a leading partner in defence, the country is said to have deemed Starmer's defence investment plan as not enough of a 'step in the right direction'.

"I would expect the UK to receive special attention because it has so much potential," the source told The Telegraph. "We will therefore continue efforts to incentivise and enable the UK to step up in a major way."

When quizzed about whether the US would rescind its support for Britain's claim to the Falklands, the official ominously said: "I can say that they [conversations] are candid and nothing is being ruled out as far as options for encouraging the sort of burden-sharing that we seek."

The Falklands are a British Overseas Territory and its population overwhelmingly wishes to remain as such.

It was invaded and occupied by Argentina in 1982, leading to war between the UK and the Southern American country, which ended after two months with a British victory.