U.S. President Donald Trump sat next to a map showing the Gulf of Mexico, who changed his name to the U.S. Gulf on February 13, 2025 at the White House Oval Office in Washington, U.S.
Kevin Lamarque | Reuters
Defense shares fell sharply Thursday afternoon amid President Donald Trump’s suggestion that the United States could cut its defense spending considerably.
Reuters said Trump said the U.S. could cut its defense spending in half. The comments appear to be in the context of Trump’s discussion of potential meetings with China and Russia’s defense spending.
The higher defense stocks fell quickly earlier in the day. Shares Lockheed Martin 1.5%, Northrop Grumman Sinking 2.6% and General Dynamics 2.6% was also lost.
Trump sent Mixed information in military spending In his 2024 campaign, early in his presidency.
On the one hand, Trump invited Elon Musk and the so-called Ministry of Government Efficiency to find places to cut costs across the entire government. Trump also pushes for a quick solution Ukrainian Warwhich involves the purchase of many American weapons.
On the other hand, he touted the importance of having a strong military force and signed an executive order to explore the establishment of the “American Iron Dome” missile defense system.
“Now, people are confused about a lot of different cross-flows,” TD Cowen policy analyst Roman Schweizer told CNBC last week.
