As Donald Trump rejects a tariff exemption for Australia experts are warning that Australia needs to lift military spending, and spend it more efficiently.

Director and Founder of Strategic Analysis Australia, Michael Shoebridge told Bill McDonald on 4BC Mornings, "We're clearly not funding our own military successfully."

"But the bigger problem is if we spend 3%, it needs to be spent better than the defence organisation is spending it now," Shoebridge continued.

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