Trump Dangles ‘Golden Dome’ Missile Shield, Says It’s Free If Canada Becomes 51st State—King Charles Fires Back: ‘The True North Is, Indeed, Strong And Free’ – ARK Space Exploration & Innovation ETF (BATS:ARKX), iShares U.S. Aerospace & Defense ETF (BATS:ITA)
President Donald Trump once again revived his long-simmering “Golden Dome” missile defense idea, this time bringing Canada into the fold, but with a provocative condition.
What Happened: On Tuesday, in a post on Truth Social, Trump claimed that Canada was eager to join the United States’ proposed multi-layer missile defense system, the “Golden Dome.”
In a rather provocative post, Trump says, “I told Canada, which very much wants to be part of our fabulous Golden Dome System, that it will cost $61 billion if they remain a separate, but unequal, Nation,” while adding that the country can get it for free or “ZERO dollars” if they become “our cherished 51st state.”
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Trump further claims that Canada is considering the offer, marking the latest escalation between Washington and Ottawa since the new administration came into power in January.
Trump’s post comes amid King Charles III’s visit to Canada to open the new session of the country’s parliament and deliver the traditional Throne speech.
This marks the first time since 1977 that a British Monarch has given this speech, as opposed to the Governor General, who is the monarch’s representative in the country, according to the BBC.
During the speech, the King made a pointed reference to the country’s national anthem, saying that “The true north is, indeed, strong and free,” following which lawmakers rose to their feet in a prolonged ovation, seen as a rebuttal to Trump’s claims in recent months, while reaffirming the country’s sovereignty.
The King arrived on the invitation of Canadian Prime Minister Mark Carney, who said that the visit “clearly underscores the sovereignty of our country,” and that it is a “historic honour that matches the weight of our times.”
Why It Matters: Experts say that Trump’s $175 billion “Golden Dome” idea could spark a new space race. “I think it’s opening a Pandora’s box. We haven’t truly thought about the long-term consequences for doing so,” they say.
The idea itself has garnered criticism from across the globe, even from the likes of North Korea, which termed it as being a “very dangerous threatening initiative.”
Defense stocks, however, have witnessed a rally on this news, with contractors such as L3Harris Technologies Inc. LHX, Lockheed Martin Corp. LMT, and RTX Corp. RTX being considered among those that are most likely to gain from this project.
Goldman Sachs analyst Noah Poponak reiterated the firm’s “Buy” rating on L3Harris, saying that the dome initiative could bring in “billions of dollars in incremental revenue.”
Space-tech company, Rocketlab USA Inc. RKLB, is another player that is well-positioned to make the most of these tailwinds, especially since its recent acquisition of payload manufacturing company, Geost.
Besides this, a month ago, it was reported that SpaceX, Palantir Technologies Inc. PLTR, and defense startup Anduril Industries were frontrunners for the project.
According to Benzinga’s Edge Stock Rankings, L3Harris scores poorly across key ranking factors, but has a favorable price trend in the short, medium, and long term. Click here to see how it compares with Lockheed Martin, RTX, and other peers and competitors.
Photo Courtesy: Harvepino on Shutterstock.com
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