According to Morgan Stanley analysts, U.S. defense companies such as Lockheed Martin and Northrop Grumman may be less affected by new tariffs due to their U.S.-based supply chains maintained for national security reasons. These companies, which primarily serve the U.S. government, are also likely to face less pressure from retaliatory tariffs imposed by other nations. Among the defense firms mentioned as potentially well-positioned to navigate the impact of the tariffs are Lockheed Martin, Northrop Grumman, and L3Harris. Conversely, defense companies with more exposure to commercial clients, like General Dynamics and Textron, are expected to face greater pressure. Stock prices of Lockheed Martin, Northrop Grumman, and L3Harris experienced modest declines, while General Dynamics and Textron shares saw more significant drops amid a broader market decline.