US President Donald Trump sits on February 13, 2025 in the Oval Office of the White House in Washington.
Kevin Lamarque | Reuters
The defense stocks fell sharply on Thursday afternoon after President Donald Trump proposed to massively reduce the defense spending on the United States.
Trump said on Thursday in the White House that the United States could at some point to reduce defense spending in half in the future. The comments came in connection with Trump, in which a potential conference discussed the defense spending with China and Russia.
“At some point, when things calm down, I will meet China and I will meet with Russia, especially these two, and I will say that there is no reason for us to spend almost $ 1 on the military … And I will say that we can spend this for other things, “said Trump.
“When we clamp everything, then one of the first meetings I have, with President Xi of China and President Putin of Russia, and I would like to say that we reduce our military budget in half. I think we will be able to do so “He added.
Defense stocks that used to be higher a day fell quickly. Shares of Lockheed Martin 1.6%dropped, Northrop Grumman Sank 3.4% and General dynamics Lost 2.1%.
Trump sent mixed news about military spending during his campaign in 2024 and in the early days of his presidency.
On the one hand, Trump Elon Musk and the so -called Department of Government Efficiency has used to find places where the costs can be reduced throughout the government. Trump also pushed for a quick solution to the war in Ukraine, which affects the purchase of many American weapons.
On the other hand, he advertised the importance of a strong military and signed an application by the executive to explore the construction of an “Iron Dome of America” rocket defense system. Trump also said on Thursday that the United States has the “largest military equipment in the world”.
“At the moment, people are confused by a number of different transverse flows,” said the political analyst of TD Cowen, Roman Schweizer, last week to CNBC.
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