"Trump's Election Chances ↑... Domestic Defense Exports Expected to Become More Active"

Hana Securities predicted on the 22nd that overseas exports of domestic defense industry would become more active as the likelihood of Trump's election increased.

[Image source=Yonhap News]

The Heritage Foundation, a conservative think tank in the United States, has been publishing presidential administration project reports since President Reagan's administration in 1981. In April last year, it prepared 'Project 2025' for Trump's re-election.

Wigyeongjae Wi, a researcher at Hana Securities, mentioned that the content of a recent interview conducted by candidate Trump and the direction of 'Project 2025' are similar, stating, "'Project 2025' clearly rejects Wilsonianism, which advocates active intervention in foreign affairs. This means reducing the role of the United States as the international police, which implies that defense costs that each country must bear on its own may increase." He added, "Also, since China has been officially declared an adversary, geopolitical instability is likely to persist for the time being, so weapons transactions will become more active as countries focus on their own defense."

Furthermore, candidate Trump has mentioned raising tariffs and immigration barriers and increasing defense spending under the slogan 'Make America Great Again.' Researcher Wi said, "Trump's remarks aim to have domestic companies establish factories in the United States, but the establishment of these barriers means an intensification of geopolitical conflicts." He analyzed, "He mentioned that South Korea, Japan, and Taiwan should increase their defense spending to fight China, which implies that conflicts centered around the South China Sea could spread rather than just the burden-sharing itself. In other words, even if exports are not directed to Europe or the Middle East, defense demand within East Asia is likely to increase."