【Wen/Observer Net Liu Bai】In order to advance the hegemonic ambitions of "Tang Luoism", U.S. President Trump has called for a 50% increase in U.S. defense spending by 2027, raising the military budget to $1.5 trillion. The current annual U.S. military expenditure has already reached a record high of $901 billion. He claimed that this huge expense would be funded through tariff revenues, aiming to build a "dream army".

To ensure that the expansion of military funding is effectively converted into improved military equipment production capacity, Trump also pressured domestic defense giants to respond to his demand for "faster and more reliable production of military equipment," otherwise they would not be able to carry out stock buybacks and dividends. He specifically named Raytheon: either invest more and start increasing factory and equipment investments, or risk losing their status as a defense contractor entirely.

Trump posted on "Truth Social" on January 7 that significantly increasing defense spending would help the United States build a "dream army," and the related expenses would be covered by tariff revenues.

"I have decided, for the country's interest, especially during these turbulent and crisis-ridden times, our 2027 defense budget should not be $1 trillion, but should be raised to $1.5 trillion."

"Thanks to tariffs and the massive revenue they bring, we are fully capable of easily achieving the $1.5 trillion defense goal."

Tracking the Venezuelan oil tanker "Mariner," U.S. F-35 fighters were deployed urgently to evacuate. IC Photo

The Financial Times reported that this massive defense spending proposal was released at a time when Trump was increasingly frequently using military force to advance his foreign policy goals during his second term.

Just days ago, the U.S. openly invaded Venezuela and kidnapped the country's president, Maduro. On the 7th, the U.S. also seized a tanker suspected of violating American sanctions while flying the Russian flag in the Atlantic Ocean.

On the 6th, the White House further made hardline statements, saying it did not rule out using military force to annex Greenland.

On the 7th, Trump also stated that before defense companies responded to his call for "faster and more reliable production of military equipment," he would "ban" these companies from conducting stock buybacks and dividends.

"All American defense contractors and the entire defense industry, please note: although we produce the best military equipment in the world (no other country can match it!), defense contractors currently are paying huge dividends and conducting large-scale stock buybacks at the expense of factory and equipment investment. This situation must no longer be allowed or tolerated!"

Trump criticized the high salaries, stock options, and other forms of income of defense company executives, which are outrageously high, yet the production speed of equipment is too slow. Even if produced, maintenance and repair are not timely enough.

"From now on, these executives must build new modern production plants for delivering and maintaining these important equipment, and producing the latest military equipment."

"Before that, none of the executives' annual salaries should exceed $5 million — although this number sounds high, it is merely a small part of their current income."

"Additionally, the speed of maintenance and repair of sold equipment is too slow and must be improved immediately. As president, I require maintenance work to be accurate and timely."

In another post, Trump turned his attention to Raytheon.

American top defense giant Raytheon covers areas such as missiles, radar, avionics, and engines. Radar systems on aircraft like the F-22 and F-15 are produced by Raytheon. Raytheon has long supplied key equipment to the U.S. military and its allies, and is one of the core contractors for U.S. arms sales to Taiwan. It has been sanctioned by China multiple times since 2020.

Trump accused Raytheon of being the slowest in responding to the "War Department's" needs, the slowest in business growth, and most eager to profit for shareholders rather than meet U.S. military demands.

"Raytheon seems to think this is the style of the Biden administration, everything remains the same, but this is not the case! Raytheon must take immediate action and increase initial investments, such as purchasing factories and equipment, or stop doing business with the 'War Department'."

"Moreover, if Raytheon wants to continue working with the U.S. government, they will not be allowed to conduct any additional stock buybacks until they have reorganized their business — they have already spent hundreds of billions of dollars on this. National interests come first, and they must pay a heavy price!"

Trump criticizes Raytheon on social media

Trump then signed an executive order requiring the Department of Defense to add clauses to contracts with defense suppliers, banning the linking of "executive incentive compensation" with "short-term financial metrics."

This executive order also stipulates that if the U.S. Secretary of Defense, Hegseth, determines that a company is underperforming, under-investing, or producing too slowly, the company will be restricted from conducting stock buybacks and dividends during that period.

Trump said that the $1.5 trillion budget figure was agreed upon after consultations with legislators and other political representatives.

However, the Financial Times believes that the proposal to increase defense spending by 50% could likely raise concerns about the sustainability of the U.S. government's finances.

According to the Congressional Budget Office, the federal government's fiscal deficit rate for this year is expected to reach 5.5%. Although this level is lower than recent figures, many economists believe it is not sustainable in the long term.

Although Trump's tariff policies helped reduce the fiscal deficit in 2025, Trump himself insisted that tariff revenues would not only cover the increased defense spending but also allow the U.S. to cut debt and provide "high dividends" to middle-class Americans.

However, according to the Congressional Budget Office's November 2023 forecast, tariffs would generate only $2.5 trillion in revenue over the next 11 years, averaging about $230 billion annually, which is far less than the proposed $500 billion increase in defense spending.

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Original: toutiao.com/article/7592896631243112987/

Statement: The article represents the personal views of the author.