United States President, Donald Trump,has proposed a sharp rise in the country’s defence spending, calling for the budget to reach $1.5trillion (£1.1trillion) in 2027, citing what he described as “these very troubled and dangerous times”.
The proposed figure would be more than 50% higher than the current defence budget of $901billion, which Congress approved in December.
“This will allow us to build the ‘Dream Military’ that we have long been entitled to and, more importantly, that will keep us SAFE and SECURE, regardless of foe,” Trump wrote on social media on Wednesday.
In a series of posts, Trump said the increase in US defence spending would be matched by tighter oversight of major defence contractors. He warned that companies could face limits on payouts to executives and shareholders unless they increase weapons production and invest in new manufacturing facilities.
Following the announcements, shares in Lockheed Martin, Northrop Grumman and Raytheon rose by more than 5% in extended trading in New York.
Some economists have raised concerns about the widening gap between US government spending and revenue, warning it may not be sustainable.
Trump, however, said the government could “easily hit” the $1.5trillion defence budget, pointing to revenue generated through tariffs.
According to reports, Trump has repeatedly pushed for higher US defence spending since his first term and has urged allies to do the same.
On Wednesday, he said military equipment was not being produced fast enough and called on companies to build modern plants to speed up delivery.
He accused defence firms of prioritising stock buybacks and shareholder payouts over production, and criticised executive pay levels.
“No Executive should be allowed to make in excess of $5million which, as high as it sounds, is a mere fraction of what they are making now.”
Trump’s renewed push for increased US defence spending comes as tensions rise internationally.
On Wednesday, the US military captured a Russian-flagged oil tanker suspected of breaching US sanctions.
This followed the seizure of Venezuelan leader Nicolás Maduro over the weekend, with US forces transporting him to the United States to face drug trafficking charges.
In Asia, China held military drills around Taiwan in December, simulating a blockade of key areas as a warning against what it called “separatist forces.”
Taiwan’s move to increase its own defence spending this year has further strained relations with Beijing, which claims the island as its territory.
- BBC