The German government is poised to renege on its pledge to raise military spending, the latest gesture of defiance by Chancellor Angela Merkel toward President Donald Trump.

If confirmed at a cabinet meeting on Wednesday, the move would mark a fresh step in the gradual estrangement between the U.S. and its erstwhile loyal European ally and comes after Mr. Trump’s repeated attacks of North Atlantic Treaty Organization leaders for not meeting a 2% military-spending target.

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