The United States and Finland have reached a deal for the U.S. Coast Guard to acquire up to 11 new icebreaker ships, a step intended to strengthen America's presence and security in the Arctic.
Deal Critical Amid Russia, China’s Influence
The deal, announced by President Donald Trump and Finnish President Alexander Stubb at the White House on Thursday, is a strategic response to the escalating global competition in the Arctic region. Finland will construct the first four ships, with the remaining seven being built at Davie Shipbuilding in Galveston, Texas, and Bollinger Shipyards in Houma, Louisiana.
The initiative is projected to attract billions in new investment to the U.S. maritime sector and generate thousands of skilled trade jobs, with the first ship scheduled for delivery by 2028.
The 11 new Arctic security cutters are estimated to cost around $6.1 billion, reported Reuters.
The move is viewed as a strategic reaction to the growing activities of Russia and China in Arctic waters. Currently, the U.S. has only two operational icebreakers, far fewer than other Arctic nations.
“…we need these ships very badly…,” said Trump.
In his first term, Trump advanced the U.S. icebreaker program and during the second term, he allocated nearly $9 billion through his One Big Beautiful Bill to construct a series of heavy, medium, and light ASCs.
Defense ETFs In Focus
The deal is a major win for Finland, advancing Arctic shipbuilding cooperation, with Prime Minister Antti Petteri Orpo highlighting the economic hardships caused by border closures during the Russia-Ukraine war.
On Thursday, Russia has escalated its attacks on Ukraine’s energy infrastructure, causing a surge in global concerns. NATO member, Finland remains a key partner to the U.S. in its peacemaking efforts between Russia and Ukraine.
Moreover, the deal follows a recent trend of increased defense spending. NATO’s June 2025 commitment to double defense spending to 5% of GDP has led to a rise in defense ETFs.
Some of the ETFs in focus, Select STOXX Europe Aerospace & Defense ETF (BATS:EUAD) and Global X Defense Tech ETF (NYSE:SHLD) surged 42.30% and 46.54%, respectively over the past 6 months. During the same time period, America-focused funds like iShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA) climbed 43.62% and 38%, respectively, as per data from Benzinga Pro.
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