Trump's remarks send defense stocks tumbling
After the US president indicated the possibility of reducing defense spending by half, military-related share prices experienced a significant decline. Read Full Article at RT.com.
TroibNews 
Shares of Lockheed Martin and other US defense stocks experienced a significant drop after President Donald Trump suggested he might reduce military spending by half. This statement was part of a broader initiative by his administration to cut costs.
According to trading data released on Friday, companies impacted include aerospace giants Lockheed Martin, Northrop Grumman, and General Dynamics.
At a press conference at the White House on Thursday, Trump indicated that he intended to discuss potential cuts to defense budgets with Russian President Vladimir Putin and Chinese leader Xi Jinping.
“At some point, when things settle down, I’m going to meet with China and I’m going to meet with Russia… and I’m going to say there’s no reason for us to be spending almost $1 trillion on the military... and I want to say let’s cut our military budget in half,” Trump elaborated.
Since the escalation of the Ukraine conflict in 2022, defense companies had seen a surge in demand for weapons and military equipment. For instance, Lockheed Martin, known for producing the F-16 fighter jets and Patriot missile systems utilized in Ukraine, reported a 21% year-on-year rise in revenues in 2023.
The current US administration has conveyed a mix of signals regarding military spending. Trump has assigned Elon Musk and his Department of Government Efficiency to work on reducing federal expenditures, including those at the Pentagon. Additionally, the president has called for a swift resolution to the Ukraine conflict, indicating plans for upcoming discussions with Putin.
Presently, the annual US military budget stands at approximately $1 trillion, representing about 3.4% of the nation’s gross domestic product. Secretary of Defense Pete Hegseth stated during his Senate confirmation hearings in January that he wouldn't advocate for a defense expenditure of less than 3% of GDP.
Russia has criticized the US arms industry for exacerbating global instability. In September, Foreign Ministry spokeswoman Maria Zakharova suggested that the rising profits from defense firms are leading to the provocation of new armed conflicts.
Furthermore, recent allegations have surfaced about NATO weapons and ammunition reportedly being sold on the dark web. Conservative commentator Tucker Carlson claimed earlier this month that the Ukrainian military was involved in selling American weapons systems on the black market, with connections to drug cartels.
In January 2024, a report from the US Department of Defense Office of Inspector General revealed that the Pentagon could not fully account for over $1 billion in military aid intended for Kiev. Additionally, in 2023, CNN reported that arms traffickers in Ukraine had stolen some of the Western-provided weaponry and equipment meant for the troops.
Lucas Dupont for TROIB News
According to trading data released on Friday, companies impacted include aerospace giants Lockheed Martin, Northrop Grumman, and General Dynamics.
At a press conference at the White House on Thursday, Trump indicated that he intended to discuss potential cuts to defense budgets with Russian President Vladimir Putin and Chinese leader Xi Jinping.
“At some point, when things settle down, I’m going to meet with China and I’m going to meet with Russia… and I’m going to say there’s no reason for us to be spending almost $1 trillion on the military... and I want to say let’s cut our military budget in half,” Trump elaborated.
Since the escalation of the Ukraine conflict in 2022, defense companies had seen a surge in demand for weapons and military equipment. For instance, Lockheed Martin, known for producing the F-16 fighter jets and Patriot missile systems utilized in Ukraine, reported a 21% year-on-year rise in revenues in 2023.
The current US administration has conveyed a mix of signals regarding military spending. Trump has assigned Elon Musk and his Department of Government Efficiency to work on reducing federal expenditures, including those at the Pentagon. Additionally, the president has called for a swift resolution to the Ukraine conflict, indicating plans for upcoming discussions with Putin.
Presently, the annual US military budget stands at approximately $1 trillion, representing about 3.4% of the nation’s gross domestic product. Secretary of Defense Pete Hegseth stated during his Senate confirmation hearings in January that he wouldn't advocate for a defense expenditure of less than 3% of GDP.
Russia has criticized the US arms industry for exacerbating global instability. In September, Foreign Ministry spokeswoman Maria Zakharova suggested that the rising profits from defense firms are leading to the provocation of new armed conflicts.
Furthermore, recent allegations have surfaced about NATO weapons and ammunition reportedly being sold on the dark web. Conservative commentator Tucker Carlson claimed earlier this month that the Ukrainian military was involved in selling American weapons systems on the black market, with connections to drug cartels.
In January 2024, a report from the US Department of Defense Office of Inspector General revealed that the Pentagon could not fully account for over $1 billion in military aid intended for Kiev. Additionally, in 2023, CNN reported that arms traffickers in Ukraine had stolen some of the Western-provided weaponry and equipment meant for the troops.
Lucas Dupont for TROIB News
