President Trump announced on Tuesday that the United States will designate Saudi Arabia as a “major non-NATO ally,” highlighting increased military cooperation with the Kingdom. “Tonight, I’m pleased to announce that we are taking our military cooperation to even greater heights by formally designating Saudi Arabia as a major non-NATO ally,” Trump said at a White House dinner honoring Saudi Crown Prince Mohammed bin Salman. The defense agreement “reinforc[es] America’s role as a regional security enabler, enhancing our US military partnerships to better allow partners to deter and defeat threats,” the White House stated.

The SDA is described as a win for the America First agenda, making it easier for US defense firms to operate in Saudi Arabia, securing new burden-sharing funds from Saudi Arabia to defray US costs, and affirming that the Kingdom views the United States as its primary strategic partner. Trump also secured an agreement for Saudi Arabia to buy nearly 300 American military tanks, “enabling Saudi Arabia to build up its own defense capabilities and safeguarding hundreds of American jobs,” according to the White House statement.

Trump thanked the crown prince for “the role he played in the transformational peace deal that was achieved last month and so many of the other things that happened to end the war in Gaza.” The agreement is the latest overture between Washington and Riyadh during the crown prince’s visit. Earlier on Tuesday, Trump and bin Salman announced Saudi Arabia would be investing $1 trillion into the U.S. Additionally, administration officials said on Tuesday that an agreement to export semiconductor chips to Saudi Arabia could come as soon as this week. Trump also said he could see a nuclear civil cooperation deal between the two countries in the future.