U.S. President Donald Trump has requested an increase in the defense budget for fiscal year 2027 to $1.5 trillion, equivalent to more than 47 trillion baht. This would be a rise of over 50% from the currently approved budget of $901 billion in December, citing that the country is facing an extremely turbulent and dangerous period on the international stage.
Trump stated that this massive budget would enable the U.S. to build a "dream military" that will keep the nation safe and secure against any adversary. Although economists warn that the gap between U.S. revenues and expenditures is unsustainable, Trump insists the government can "easily" bear this budget by relying on customs tax revenues.
Beyond the budget increase, Trump also sent a warning to major defense industry companies, criticizing them for using profits to pay large dividends to shareholders and repurchase shares instead of investing in expanding weapons production capacity.
Trump proposed capping senior executives' salaries at $5 million per year, pointing out that these individuals are currently overpaid. He named Raytheon as the company "slowest to respond" to national security needs and threatened that without investments in new factories or machinery, "they will no longer do business with the Department of War."
However, following this announcement, shares of major arms manufacturers such as Lockheed Martin, Northrop Grumman, and Raytheon surged more than 5% in pre-market trading on the New York Stock Exchange.
This move comes amid rising global tensions. On Wednesday (7 Jan), the U.S. military seized a Russian-flagged oil tanker suspected of violating sanctions, and last weekend arrested Venezuelan leader Nicolás Maduro on U.S. drug trafficking charges. Meanwhile, in Asia last December, China conducted military drills encircling Taiwan, simulating an occupation and blockade of key island areas as a warning to "separatist forces."
,BBC