Trump's tariffs threaten to inflate US's defence budget
Tariffs imposed by Donald Trump could seriously impact the American defence industry, complicating international cooperation and increasing production costs for military equipment, writes Politico.
Impact of tariffs on the U.S. defence industry
Tariffs introduced by U.S. President Donald Trump could have serious consequences for the American defence industry. As Politico reports, they could complicate international cooperation and increase the costs of producing military equipment.
Tariffs could threaten projects such as the production of F-35 fighter jets, air defence systems, and the construction of nuclear-powered submarines.
Bill Greenwalt, a former Pentagon official, warns that supply shortages and mutual retaliation from allies may occur. Some potentially vital supplies are either going to cost a ... lot more than what they did or they’re just not going to be available, said Greenwalt in an interview with "Politico".
Supply issues and rising costs
The Pentagon has spent decades building a global supplier network that now may fall apart in the face of tariffs. Without exemptions for the defence sector, the administration could undo many of these efforts, delaying the production of American weapons.
Senator Mark Kelly, a member of the Senate Armed Services Committee, pointed out the complexity of defence production. He noted that new tariffs could impose multiple burdens on American military industry products during the production process.
– The prices are going to go up, and the prices that DOD has to pay are going to go up. Our defence budget, if we want to maintain the same type of force, will get more expensive – said Kelly.
