The Japanese Cabinet approved a record $55 billion defense budget for 2025 as Japan enhances its counterstrike proficiency with long-range cruise missiles and begins deploying Tomahawk missiles to counter growing threats from North Korea, the People’s Republic of China (PRC) and Russia.
The budget marks the third year of Japan’s five-year defense buildup under a national security strategy adopted in 2022. The allocation is part of the more than $730 billion proposed national budget that requires parliamentary approval.
Japan is preparing to deploy United States-made Tomahawks as part of its effort to acquire long-range weapons. The budget allocates $6 billion for the “standoff” defense system that also includes long-range missiles, satellite constellations and other arsenals.
The purchases and addition of equipment to launch Tomahawks from Aegis-class destroyers totals $11.4 million.
Japan plans to spend an additional $3.37 billion to reinforce its missile defense system. That includes buying interceptors and a mobile reconnaissance radar for Okinawa, where more than half of about 50,000 U.S. troops stationed in Japan are based.
Under the national security strategy, Japan eventually will double its annual defense spending to about $63 billion, making it the world’s third-largest defense spender after the U.S. and the PRC.
Japan also is pushing to strengthen its domestic defense industry through joint development projects and foreign sales.
For 2025, Japan plans to spend $2 billion to build three multipurpose compact destroyers that require 90 crew members, less than half the crew size now needed thanks to automation and the labor-saving design. The upgraded Mogami-class destroyers are equipped with long-range missiles, reinforced anti-submarine equipment and high stealth performance, officials say.
The destroyers, built by Japan’s Mitsubishi Heavy Industries, also are competing for Australia’s Sea 3000 frigate project.
The project deepens cooperation between Australia and Japan and enhances Japan’s warship capabilities, Japanese Defense Minister Gen Nakatani said in November 2024. The nations have developed close ties as they face growing threats from the PRC.
Japan is also jointly developing a next-generation fighter jet with Italy and the United Kingdom for deployment in 2035 and has allocated $690 million in the 2025 budget for the project.
