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Significance

President-elect Donald Trump plans to expand military spending as part of his "America First" foreign policy but has so far offered few details of how this expansion will be financed. The new budget will have significant commercial implications for private entities involved in US defence procurements and for Washington’s force posture abroad.

Impacts

Trump may focus on increasing US-based missile defence capabilities instead of regionally focused systems based overseas.

Political complications over NATO deployments may ensue if US spending outstrips that of its allies.

Expansion of the nuclear arsenal beyond current modernisation plans could spark an arms race with Washington’s rivals.

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