The United States has turned the Ukraine conflict into a massive boost for its defence industry, according to a new Observer Research Foundation (ORF) report. The study shows that US arms sales surge as Ukraine war reshapes global defence spending, even as Donald Trump imposed 50% tariffs on Indian imports.
Global defence spending rose by 9.4% in 2024 to $2.72 trillion — the steepest annual increase since the Cold War. Much of this was driven by Ukraine’s rise as the world’s largest arms importer. Between 2020 and 2024, Ukraine’s imports jumped by 9,627%, making up 8.8% of global imports. The US supplied 45% of these weapons.
The report notes that Washington moved from aid to direct sales in 2024–25. In August 2025, the US approved an $825 million missile package for Ukraine. NATO allies including Denmark, Norway, the Netherlands, Germany, and Canada also pledged billions under the NATO PURL initiative to fund American arms purchases.
The US share of global arms exports climbed to 43% in 2020–24, up from 35% earlier. Lockheed Martin, Boeing, RTX, General Dynamics, and Northrop Grumman dominated Pentagon contracts, reflecting how US arms sales surge as Ukraine war continues to drive demand worldwide.
