Amid escalating geopolitical conflicts, US President Donald Trump has proposed increasing the US military budget to USD 1.5 trillion for 2027, arguing that the higher allocation is necessary for the good of our country. He said that in what he described as very troubled and dangerous times, the defence budget for 2027 should not be USD 1 trillion, but instead be raised to USD 1.5 trillion. The 2026 military budget is set at USD 901 billion.
Trump made the call for a sharp increase in defence spending just days after ordering a US military operation aimed at capturing Venezuelan leader Nicolas Maduro and transferring him to the United States to face drug trafficking charges. US military forces are continuing to build up in the Caribbean Sea. In recent days, Trump has also floated the idea of taking control of Denmark's Greenland, citing national security concerns, and indicated that he is open to authorising military operations in Colombia.
'This will allow US to build dream military': Trump
In a post on Truth Social, Trump said the decision comes after long and difficult negotiations with lawmakers and senior officials. "After long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars," he said.
Trump further said that this would allow the US to build a "dream military" and keep America safe and secure. "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 links defence budget hike to tariffs
The US President further linked the proposed spending increase to revenues generated through tariffs imposed on other countries. "If it weren't for the tremendous numbers being produced by Tariffs from other Countries, many of which, in the past, have 'ripped off' the United States at levels never seen before, I would stay at the $1 Trillion Dollar number but, because of Tariffs, and the tremendous Income that they bring, amounts being generated, that would have been unthinkable in the past (especially just one year ago during the Sleepy Joe Biden Administration, the Worst President in the History of our Country!), we are able to easily hit the $1.5 Trillion Dollar number while, at the same time, producing an unparalleled Military Force, and having the ability to, at the same time, pay down Debt, and likewise, pay a substantial Dividend to moderate income Patriots within our Country!" he added.
Trump threatens to cut off Pentagon purchases from Raytheon
Meanwhile, Trump on Wednesday also threatened to cut off Pentagon purchases from Raytheon, one of the biggest US defence contractors, if the company did not end the practice of stock buybacks and invest more profits into building out its weapons manufacturing capacity.
Trump in recent months has repeatedly complained that defense companies have been woefully behind on deliveries of critical weaponry, yet continue to mete out dividends and stock buybacks to investors and offering eye-popping salaries to top executives.
"Either Raytheon steps up, and starts investing in more upfront investments like Plants and Equipment, or they will no longer be doing business with the Department of War. Also, if Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together," Trump said on social media.
On Wall Street, shares of defense contractors fell, with Northrop Grumman dropping 5.5 per cent, Lockheed Martin declining 4.8 per cent and RTX Corp., the parent company of Raytheon, slipping 2.5 per cent.
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