U.S. President Donald Trump has called for increasing the country’s defense budget to 1.5 trillion dollars for 2027, describing the current period as “extremely troubled and dangerous.” The proposed amount would represent a more than 50 percent rise from the 901 billion dollars approved by Congress for the current year. Trump announced the plan on social media, saying it would help build a “dream military” and ensure safety against all enemies.
In a separate post, Trump warned that he would take strict action against defense contractors and shareholders if companies failed to accelerate weapons delivery and establish new production facilities. Following his announcement, shares of major U.S. defense manufacturers Lockheed Martin, Northrop Grumman, and Raytheon rose by more than five percent.
Economists have previously cautioned that the gap between U.S. spending and revenue has reached an unsustainable level. Trump, however, asserted that Washington could “easily reach” the proposed defense budget through revenue generated from tariffs.