The war led to massive American rearmament . Their defence budget shot up to $48 billion in 1951 and $60 billion by 1952. The USA made a series of alliances including one with the Philippines and in 1951 they signed the ANZUS Pact with Australia and New Zealand. A new border between North and South Korea was drawn, which gave South Korea some additional territory and demilitarized the zone between the two nations. The war cost the lives of millions of Koreans and Chinese, as well as almost 40,000 Americans.