Japan May Slash F-35, Missile Orders by Half Amid Budget Crunch

Japan could slash planned purchases of F-35 stealth fighters and missiles by as much as half as a budget dispute threatens Tokyo's military expansion, Reuters reported on Friday, citing four people familiar with the discussions.

Japan's Finance Ministry has proposed spending between 50 trillion and 60 trillion yen ($313 billion–$376 billion) on defense over five years beginning in April 2027.

The proposal exceeds the current 43 trillion yen five-year defense plan but falls significantly short of the 80 trillion yen sought by some defense officials and lawmakers from the ruling Liberal Democratic Party.

According to Reuters, defense contractors have been warned that expected orders could face substantial reductions, potentially affecting US-made F-35 fighter jets and missile systems.

The dispute comes as Prime Minister Sanae Takaichi's government seeks to strengthen Japan's military capabilities in response to China's growing regional military presence.

However, Tokyo faces competing fiscal demands, including plans to stimulate economic growth and reduce the consumption tax on food.

The proposed tax reduction could create an annual revenue shortfall of approximately 4.3 trillion yen.

The lower defense spending proposal could also leave Japan short of its goal of raising military expenditure to 2% of gross domestic product.

The debate comes as US President Donald Trump presses American allies to increase defense spending.

Finance Minister Satsuki Katayama declined to discuss the specific budget figures, saying deliberations had not reached that level of detail.

The proposal is expected to face opposition from lawmakers who argue that greater military investment is necessary to deter regional security threats.

No final decision has been announced on the five-year defense budget or specific aircraft and missile procurement reductions.