Trump wants to raise the US defense budget by 50% to $1.5 trillion
President Donald Trump has suggested increasing US military expenditure by 50% to $1.5 trillion by 2027, citing growing threats to international security.
With a budget of $1.5 trillion (£1.1 trillion) in 2027, President Donald Trump has called for a significant boost in US defense spending, citing what he called “very troubled and dangerous times” worldwide.
If approved, the amount would be more than 50% more than the $901 billion defense budget that Congress approved in December. Trump said on Wednesday that the increased budget would enable the US to create a “Dream Military” that would be able to maintain the nation “safe and secure, regardless of foe” in a social media post.
Even while analysts have long warned that the disparity between US government spending and income is unsustainable, Trump persisted that the US could “easily hit” the projected spending level, arguing that tariff revenues would help balance the expense.
The president also warned big US defense companies about what he called excessive rewards to executives and shareholders, in addition to calling for increased military expenditure. According to Trump, defense companies run the risk of losing government business if they don’t increase the manufacture of weapons and invest in new facilities.
He stated that “military equipment is not being made quickly enough” and urged businesses to construct “new and modern plants” instead of giving shareholder dividends and stock buybacks priority. In his criticism of corporate salaries, he called the compensation packages offered by arms manufacturers “exorbitant” and suggested capping top executives at $5 million.
Trump specifically targeted Raytheon in a different article, calling it the “least responsive” to America’s defense demands and the slowest to increase production. If the corporation didn’t make more significant investments in plants and equipment, he warned, it might not be able to get future contracts with the “Department of War.”
Despite Trump’s detractors, his demand for defense expenditure was well received by the markets. Major defense companies’ stock, including as Lockheed Martin, Northrop Grumman, and Raytheon, increased by over 5% in extended New York trading after his comments.
Trump has refocused on defense in the face of escalating international tensions. US forces apprehended a Russian-flagged oil tanker on Wednesday that they believe violated US sanctions. The action came after Nicolás Maduro, the leader of Venezuela, was arrested over the weekend and brought to the United States to face drug trafficking allegations.
Geopolitical tensions have also increased in other parts of Asia; in December, China held military exercises near Taiwan that mimicked a blockade of the independent island. China views Taiwan as part of its territory and is enraged by Taiwan’s own attempts to boost defense spending.
Since taking office, Trump has continuously argued that more defense spending by the US and its allies is necessary in an increasingly insecure world.
