By Obinna Uballa
Global defense stocks surged on Wednesday after United States President Donald Trump, in a striking departure from his earlier position, declared that Ukraine could retake all territory currently occupied by Russia.
In a late-night Truth Social post, Trump wrote that Kyiv, with backing from the European Union and NATO, “is in a position to fight and WIN all of Ukraine back in its original form.”
The U.S. president had previously argued that Ukraine would likely need to cede land in any peace deal. His new tone follows what he described as a deeper understanding of the war’s dynamics, claiming Russia faces mounting “economic trouble” and dismissing it as a “paper tiger.”
The shift was welcomed by Ukrainian President Volodymyr Zelenskyy, who hailed Trump’s “strong cooperation,” while the Kremlin struck a cautious note. Spokesman Dmitry Peskov said Russian President Vladimir Putin “highly values Trump’s willingness to help,” though he rejected the “paper tiger” label.
Trump also sharpened his rhetoric toward Moscow on Tuesday, urging NATO members to shoot down Russian aircraft after a series of incursions into Polish, Romanian and Estonian airspace.
The remarks fueled gains across Europe’s defense sector. Germany’s Renk jumped more than 5%, while Italy’s Leonardo and Sweden’s Saab each rose over 3%. Germany’s Hensoldt climbed 4.4%, with CFO Christian Ladurner saying Trump’s comments “reaffirm the sector’s warnings that Putin will continue to test the bloc.”
In Asia, South Korean defense stocks including Hanwha Aerospace, Korea Aerospace and Hyundai Rotem gained between 2% and 5%. In the U.S., Boeing, Lockheed Martin and RTX ticked up in pre-market trading, while Northrop Grumman was slightly lower.
…with additional reporting from CNBC
