Washington: Whereas President Donald Trump imposed 50% tariffs on most Indian imports to penalise New Delhi for purchasing Russian oil, a brand new report from the Observer Analysis Basis (ORF) reveals the USA itself profited massively from the warfare in Ukraine. America’s military-industrial community skilled “explosive” progress as Washington provided 45% of Kyiv’s complete arms purchases.
“International defence spending elevated by 9.4% to $2.72 trillion in 2024, marking the very best annual rise because the finish of the Chilly Battle, pushed largely by the Ukraine battle… Within the Ukraine battle, the USA has sought to leverage its defence-industrial base (DIB) to help the warfare effort by offering Ukrainian Armed Forces (UAF) with domestically produced weapons, munitions and different navy {hardware}, whereas replenishing US and allied stockpiles,” the ORF report mentioned.
The earnings that started throughout Joe Biden’s administration continued into Trump’s tenure. Between 2020 and 2024, Ukraine turned the world’s largest arms importer, rising from 0.1% of world imports in 2015-19 to eight.8% – a surge of 9,627%. Throughout this era, the USA provided 45% of Ukraine’s arms, representing 9.3% of America’s complete arms exports.
In 2023-24, Ukraine ranked as the highest world arms importer. From 2024 onward, and more and more in 2025, America shifted extra provides from direct assist to business gross sales.
“In August 2025, the USA accredited a $825 million sale of three,350 Prolonged Vary Assault Munitions (ERAM) missiles with related tools to Ukraine. Funding for these gross sales comes from NATO allies (Denmark, Norway and Netherlands) and US International Navy Financing (FMF) programmes, that are mortgage/grant mechanisms which will contain reimbursement however are gross sales,” the report mentioned.
The USA additionally persuaded European NATO states and Canada to purchase over $10 billion in American arms, both to replenish stockpiles for Ukraine or for direct transfers underneath the NATO Prioritised Ukraine Necessities Checklist (PURL).
Finalised on July 14, 2025, the settlement at a gathering between NATO Secretary Common Mark Rutte and Trump required collaborating states to fund “packages” of about $500 million every. Almost $2 billion has already been dedicated.
On August 4, the Netherlands introduced the primary $500 million artillery and ammunition package deal. Denmark, Norway and Sweden pledged one other $500 million on August 5. Germany adopted with a $500 million PURL package deal on August 13 and Canada dedicated $500 million on August 24.
On the 2025 NATO Summit in The Hague, member states agreed to boost annual defence and safety spending to five% of GDP by 2035 – a 150% bounce from the two% goal set in 2006 and reaffirmed in 2014 after the Crimea disaster.
“The USA accounted for 64% of NATO allies’ arms imports in 2020-24, up from 52% in 2015-19, largely pushed by the Ukraine disaster,” the report mentioned.
Globally, the US share of arms exports rose 21% from 35% in 2014-19 to 43% in 2020-24.
“In 2024, the full worth of transferred defence articles, providers and safety cooperation actions underneath the International Navy Gross sales (FMS) system was $117.9 billion, a forty five.7% enhance from $80.9 billion in 2023. Direct business gross sales rose to $200.8 billion from $157.5 billion, a 27.6% enhance. Throughout the US defence industrial base of greater than 100,000 firms, 5 prime contractors (Lockheed Martin, RTX, Common Dynamics, Northrop Grumman and Boeing) secured over one-third of all Pentagon contracts,” the ORF report added.