Trump Announces Plans to Build up to 25 New Battleships

Summary

Donald Trump announced a plan to build 10 new battleships, with a potential for up to 25.Zhitong This follows earlier announcements in December 2025 regarding a “Trump-class” battleship with a 30,000-40,000 ton displacement, equipped with advanced weapons like hypersonic missiles and railguns. The plan is underpinned by a proposed 50% increase in the FY2027 military budget to $1.5 trillion, citing “turbulent and dangerous situations.”now 财经+ 2 Trump has also urged defense firms to halt buybacks and boost R&D.etnet However, experts have expressed skepticism about the project’s feasibility, with some analysts stating the ship will likely never be built.

Impact Analysis

This battleship announcement is just the political cover for the real story: the massive jump in the defense budget. Remember he already flagged a $1.5 trillion budget for FY27—a 50% increase.now 财经+ 2 Whether these specific ships are feasible is almost irrelevant; experts are already highly skeptical. The key signal is the sheer scale of the spending commitment. That money will flow directly to the prime defense contractors for this or other programs. He’s even telling them to stop buybacks and reinvest in production and R&D, which reinforces the directive to spend.etnet This isn’t a nuanced signal; it’s a brute-force tailwind for the entire sector. The macro risks of this level of spending are a longer-term story.Wallstreetcn For now, the trade is simple: stay long the defense primes. They are the clear beneficiaries.