Denmark Snubs U.S. in $9 Billion Missile Deal, Turns to Europe

Denmark has just made its boldest defense investment yet, signing off on a 58 billion kroner ($9.1 billion) missile order that shifts business decisively toward Europe. After striking a deal with opposition parties, Copenhagen said it will select systems from France, Italy, Norway, or Germany, marking a break from its long reliance on U.S. contractors. Investors may see this as a turning point: Denmark had previously built its air force around Lockheed Martin's LMT F-35s in 2016, but this time the U.S. was left out as the country seeks to expand firepower in response to intensifying threats from Russia.

Political context matters here. President Donald Trump has pressed European NATO allies to boost their defense spending, but his push to acquire Greenland strained relations with Denmark. Against that backdrop, Copenhagen's pivot takes on greater weight, coming only weeks after Norway awarded its record frigate contract to the UK, sidelining U.S. and other European bids. The trend points to northern Europe directing capital inward, reinforcing domestic suppliers over traditional American partners.

The financial commitment is striking. Denmark already allocates around 3% of GDP to defense, with plans to climb toward 5% by 2035 under NATO's new framework. For investors, that trajectory signals billions in potential contracts for European defense firms, with procurement momentum spreading across the region. At the same time, U.S. suppliers risk losing share in a part of the world where spending is accelerating, reshaping the balance of future defense orders.