US President Donald Trump sits in the Oval White House office in Washington February 13, 2025.
Kevin Lamarque Reuters
Defense reserves fell sharply on Thursday afternoon after President Donald Trump suggested that the US could massively reduce defense expenses.
Trump said that on Thursday in the White House of the US could reduce defense expenditure at some point in the future. Comments appeared in the context of Trump discussing a potential conference on defense expenditure with China and Russia.
“At some point, when everything calms down, I will meet with China and meet with Russia, especially those two, and I will say that there is no reason for us to spend almost 1 USD Trillion in the army … and I will say that we can spend It's for other things – said Trump.
“When we straighten it all, it is one of the first meetings that I want to have is the president of XI China and President Putin from Russia and I want to say that we will limit our military budget by half. I think we will be able to do it – he added.
Defense stocks, which were higher earlier on the same day, fell quickly. Actions Lockheed Martin fell by 1.3%, Northrop Grumman sink 2.6% and General dynamics lost 2.1%.
Trump sent Mixed news about military expenses During his campaign 2024 and the early days of his presidency.
On the one hand, Trump dragged Elon Musk and the so -called government department to find places to reduce costs throughout the government. Trump also pressed for fast resolution War in Ukrainewhich included the purchase of many American weapons.
On the other hand, he advertised the importance of having a strong army and signed an executive order to examine the construction of the “Iron Dome of America” rocket defense system. Trump also said on Thursday that the US has “the largest military equipment in the world.”
“At the moment people are confused with many different cross currents” on defense expenses, TD Cowen policy analyst Roman Schweizer said CNBC last week.