Prospective sales of U.S. military equipment to foreign governments, which have surged nearly 50 percent this year, may dwindle amid retaliation for President Trump’s tariffs on some of America’s closest allies.
Duties of 25 percent on steel imports and 10 percent on aluminum from Canada, Mexico, and Europe may force those countries “to spurn U.S. defense manufacturers for hardware,” said Roman Schweizer, an analyst with Cowen Washington Research Group. While no specific defense penalties have been imposed so far, he said, “we find it difficult to imagine that it would not have an impact with major allies.”
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