Trump calls for US military spending to rise more than 50% to $1.5tn

59 minutes agoOsmond ChiaBusiness reporterPresident Donald Trump has called for US defence spending to be increased to $1.5tn (£1.1tn) in 2027 for what he called "these very troubled and dangerous times".That would be more than 50% higher than this year's $901bn budget, which was approved by Congress in December."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 said on social media on Wednesday.In separate posts, the president said he would crack down on payouts to bosses and shareholders of major US defence contractors unless the firms speed up deliveries of armaments and build new manufacturing plants.Shares in major US defence equipment makers Lockheed Martin, Northrop Grumman and Raytheon rose by more than 5% in extended trading in New York trade after Trump made the announcements.Economists have previously warned that the gap between US spending and its income has reached unsustainable levels.But Trump said Washington can "easily hit" his proposed $1.5tn defence budget thanks to money being brought in by tariffs.Trump has been pushing for higher defence spending by the US and its allies since his first term in the White House.He said in another post on Wednesday that military equipment is not being made quickly enough and urged companies to build new and modern plants.Defence companies are issuing "massive" payouts to shareholders and stock buybacks at the expense of investing into production, Trump said. He also criticised the "exorbitant" pay packages of executives at arms manufacturers."No Executive should be allowed to make in excess of $5 Million Dollars which, as high as it sounds, is a mere fraction of what they are making now."In a separate post, Trump singled out Raytheon, saying it was the "least responsive" to America's defence needs and the slowest to increase production."Either Raytheon steps up and starts investing in more upfront Investment like Plants and Equipment, or they will no longer be doing business with the Department of War," Trump wrote in a separate post.The BBC has contacted Raytheon for comment.Trump's call for much higher defence spending comes as geo-political tensions have increased around the world.On Wednesday, the US military captured a Russian-flagged oil tanker suspected to have violated US sanctions.It came after US forces seized Venezuelan leader Nicolás Maduro at the weekend and took him to America to face drug trafficking charges.In December, China held military drills around Taiwan simulating the seizure and blockade of the island's key areas, as a warning against "separatist forces".