President Donald Trump’s trade and foreign policy agenda is pushing European countries to shift existing defense orders to local defense firms — and the market is responding.
Trump’s rhetoric on European defense spending is stressing the strength of partnerships with NATO countries, two European defense officials told NOTUS. As allies across the Atlantic continue to support the war in Ukraine, the looming threat of Russia and a perception of dwindling support from Washington have started to show financially.
“European defense stocks have just been on a tear at the start of this year, given all the news that’s coming out of NATO,” said Ido Caspi, a research analyst for the New York-based investment firm Global X. The firm’s defense technology exchange-traded fund passively follows the global market, and European defense companies have gained significant ground in the 87 days since Trump took office.