Trump’s $1.5T ‘Dream Military’: What It Means for China, Russia and the World

Donald Trump has proposed raising the 2027 US defense budget to $1.5 trillion, a 50% increase from 2026. He claims increased tariff revenues will fund the expansion, which aims to strengthen the military amid global tensions. 

US President Donald Trump has unveiled a proposal to raise the United States defence budget for 2027 to $1.5 trillion, marking an unprecedented increase from the previously planned $1 trillion allocation.

The dramatic boost -- a more than 50% jump from the 2026 budget of about $901 billion -- is part of Trump’s vision to build what he calls a “Dream Military” capable of keeping the country “safe and secure, regardless of foe.” He announced the proposal on Truth Social, saying it followed “long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives.”

Trump has justified the record-high figure by pointing to sharply increased tariff revenues, claiming these funds — generated from trade measures with other countries — make the expanded spending feasible without broader budget cuts. “If it weren’t for the tremendous numbers being produced by Tariffs from other Countries … I would stay at the $1 Trillion Dollar number,” he said.

The proposal arrives amid rising global tensions, with US engagements in regions like South America and the Caribbean, and strategic interests involving places such as Greenland, Colombia, and Mexico. Analysts say such a surge could prompt allied nations and rivals like China and Russia to reassess their own military planning, potentially fuelling a new arms competition.

Beyond finance, Trump has also targeted major defence contractors, threatening to limit stock buybacks and cap executive pay unless companies increase production.

While supporters praise the plan as vital for American dominance and deterrence, critics warn it could strain global diplomacy, escalate arms races, and shift resources away from domestic priorities. Congressional approval will be crucial before the proposal becomes reality.