WASHINGTON — President Donald J. Trump said on Wednesday the 2027 US military budget should be $1.5 trillion, significantly higher than the $901 billion approved by Congress for 2026, boosting defense stocks, but sparking skepticism among budget experts.

Any such increase in the military budget would require congressional authorization, which could pose a challenge, although Mr. Trump’s Republicans, who hold slim majorities in both the Senate and House of Representatives, have shown little appetite for objecting to Mr. Trump’s spending plans.

Mr. Trump said in a Truth Social post that he made the decision on 2027 military spending “after long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives… especially in these very troubled and dangerous times.”

In just the last few days, US forces seized Venezuela’s Nicolas Maduro from his country, toppling him from power. The White House has also said that Mr. Trump is discussing options for acquiring Greenland, including potential use of the US military. Mr. Trump has also deployed US troops to police a number of cities across the country.

The news followed a separate Truth Social post from Mr. Trump blasting defense companies for producing weapons too slowly. In it, he pledged to block defense contractors from paying dividends or buying back shares until they accelerated production.

Mr. Trump said the extra spending would be covered by revenues generated by tariffs he has imposed on nearly every country and many industrial sectors, and the US would still be able to reduce its debt and send dividend checks to “moderate income” Americans.

The Committee for a Responsible Federal Budget, a nonpartisan think tank, estimated the proposal would cost $5 trillion through 2035, while adding $5.8 trillion to the US debt with interest. It said only half the cost could be covered by tariffs in place now, noting that the Supreme Court could rule that a large set of tariffs were illegal.

The Bipartisan Policy Center estimates that combined tariffs raised $288 billion in 2025, well below Mr. Trump’s own estimates, which have fluctuated around $600 billion in recent days.

Byron Callan, a defense analyst with Capital Alpha Partners, said Mr. Trump’s post raised questions about where the funds would be directed and whether they could even be absorbed by the defense sector.

He said the last time the US Defense Department saw an increase higher than 50% was in 1951 during the Korean War, with even huge surges in military spending under former President Ronald Reagan in 1981 and 1982 amounting to 25% and 20%.

In trading after the market closed, shares in the biggest defense firms rose on the news as investors bet a surge in spending would bolster profits.

Lockheed Martin was up 6.2%, General Dynamics rose 4.4% and RTX added 3.5%. — Reuters

PARIS — France’s aerospace industry on Thursday expressed concern over the “weaponization” of global supply chains as major powers pursue their geopolitical agendas, and warned that rare earths remained a potential pressure point despite a US-China trade truce.

Olivier Andries, president of France’s GIFAS aerospace association and CEO of engine maker Safran, said 90% of the industry’s needs for the rare elements were supplied by China, which is at odds with Washington over trade.

“There is a trend towards the weaponization of the supply chain, towards using the dependency on critical supplies to create a geopolitical advantage. That is particularly the case for rare earths which is a very sensitive topic,” he said.

Rare earths or the magnets which they are sometimes made into can be found in small but significant quantities in many modern products, including jet engines.

Andries, speaking at a GIFAS briefing on a day when France’s deeply divided parliament was returning from its end-year break, said he was also concerned over the continued lack of a domestic budget for 2026, adding parliamentarians had “lost direction”.

French Prime Minister Sebastien Lecornu is making a fresh attempt to pass the budget after lawmakers passed emergency legislation.

So far, France’s defense plans are on track, Mr. Andries said, as Europe boosts spending in the face of US political pressure and the ongoing conflict in Ukraine.

Asked about the future of a Franco-German-Spanish fighter project, which is engulfed in disputes between Airbus and Dassault Aviation, Mr. Andries said: “There is a very strong political will at the highest level in France and Germany to go ahead. But for things to advance, you also need to have agreements and the manufacturers accepting to work together”. — Reuters

SYDNEY — A decades-old Pacific organization for environmental protection said the United States must go through a formal process to withdraw its support, after President Donald Trump listed it among 66 entities the US would leave because they “operate contrary to US national interests”.

On Thursday, Washington said it would withdraw from dozens of international and UN entities, including the world’s key climate treaty and the Secretariat of the Pacific Regional Environment Program (SPREP).

Headquartered in Samoa, SPREP has supported dozens of low-lying island states to raise awareness at UN climate conferences about the threat to their survival from rising sea levels caused by climate change.

The organization employs more than 150 staff across Fiji, Solomon Islands, Vanuatu, and the Republic of the Marshall Islands, and runs program to reduce pollution, improve warning systems for severe weather and plan for disaster response to oil spills.

Sefanaia Nawadra, SPREP’s director-general, said the US contributed funding and technical expertise, but other partners were expected to help it continue its work.

“There is a formal process that the US will need to follow to withdraw its membership of SPREP. They are a valued member of SPREP until that formal withdrawal process is completed,” he said in a statement to Reuters.

“The impact of that will be determined as part of the details of the withdrawal process,” he added.

According to SPREP’s annual report, its annual budget comes primarily from five donor countries, Australia, Britain, New Zealand, France, and the US

China has also contributed $200,000 annually for several years.

A Pacific Islands government minister, who declined to be named because of the sensitivity of the issue, said the US move to withdraw from the organization would negatively impact US influence in the region, where China is expanding ties.

Several Pacific Island nations face new hurdles to enter the United States.

Fiji, Vanuatu, Tuvalu, and Tonga were listed on Wednesday among countries whose nationals must pay a costly visa bond to enter the US from January 21.

Tonga was listed in December as facing entry restrictions from January 1.

US Deputy Secretary of State Christopher Landau discussed migration in a call on Wednesday with Tonga Prime Minister Lord Fakafanua, he wrote on social media platform X.

The United States Embassy in Suva referred requests for comment to the State Department, which did not immediately respond to a request for comment. — Reuters

SYDNEY — Australia will hold a Royal Commission inquiry into the Bondi Beach mass shooting in which 15 were killed, the country’s most powerful public inquiry, Prime Minister Anthony Albanese said on Thursday.

The mass shooting at a Jewish Hanukkah celebration at Sydney’s famed Bondi Beach on December 14 shocked a country with strict gun laws and fueled calls for tougher controls and stronger action against antisemitism.

Police say the alleged father and son perpetrators were inspired by the Islamic State militant group.

Mr. Albanese said the Royal Commission, a government inquiry which can compel people to give evidence, will be led by retired judge Virginia Bell.

It will consider the events of the shooting as well as antisemitism and social cohesion in Australia, and is expected to report its findings by December this year.

“This Royal Commission is the right format, the right duration and the right terms of reference to deliver the right outcome for our national unity and our national security,” Mr. Albanese told a news conference on Thursday.

Mr. Albanese had initially resisted calls to set up a Royal Commission, saying the process would take years, which attracted criticism from Jewish groups and victims’ families who urged him to reconsider.

“I’ve taken the time to reflect, to meet with leaders in the Jewish community, and most importantly, I’ve met with many of the families of victims and survivors of that horrific attack,” Mr. Albanese said.

The government last month announced an independent review into law enforcement agencies that will assess whether authorities could have taken additional steps to prevent the attack.

That review, which will examine whether existing laws or information gaps stopped police and security agencies from acting against the alleged attackers, will now be folded into the Royal Commission, Mr. Albanese said. It is expected to report its findings in April. — Reuters