US President Donald Trump on Wednesday said next year's defence budget should be $1.5 trillion, a 50 per cent increase that would result in America having a "dream military."
The US already spends more on its military than the next nine countries combined, a total of about 40 per cent of global defence outlays. The next biggest defence spender is China, at about $300 billion annually.
"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," Mr Trump said in a Truth Social post after negotiations with US senators and political representatives.
His announcement came shortly after another proclamation on Truth Social in which he said he would not allow American defence companies to issue dividends or buy back stock until they increase – and improve – their production.
Mr Trump said in that post on Truth Social that defence executives' pay should be capped at $5 million.
Those comments led to a sell-off in defence company shares, with Northrop Grumman down more than 5 per cent. But his comments on additional defence spending erased those losses in after-hours trading,
He said executive pay at defence companies should be capped until they build “new and modern production plants".
Mr Trump has enough influence to make such demands given the reliance defence companies have on US government contracts.
Mr Trump said compa
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