European defense giants fell sharply on Monday, suffering losses recently as investors struggled with a widespread and severe stock market downturn.

US President Donald Trump There are no signs of relaxing his active trade policy after the launch Brand new tariffs Last week, it was said “Sometimes you have to take medication.”

US stock market Smash down Friday for the second consecutive day, all three main indexes Decline over 5% As a Global collapse. us Stock Futures Monday morning was lower and the sell-off track continued.

European Defense Unit In recent months In regional promotion of strategic independence, Among the worst performers on Monday.

German weapons manufacturer Rheinmetallurgy London time (5:38 a.m. ET) dropped 10.5% at around 10:38 a.m., and cut some of that loss after falling as much as 27% shortly after opening. According to Reuters, the company briefly embarked on the worst day on record.

Shares of German defense giants Thyssenkrupp Germany fell 10.2% Color group Trading is 7.6% lower, while trade in France Thales Falling 7.1%. Swedish defense manufacturer Saab The last time it was reduced by 5.3%, while the Italian ones Leonardo Nearly 9% of the deal.

US shares Lockheed Martin,,,,, Northrop Grumman and General Dynamics Both fell 4% in pre-market trading.

Ben Heelan, head of aerospace and defense research at Bank of America, said the tariffs may have a “slight impact” on European defense shares. He added that the current stock price level is an “excellent opportunity” for investors.

“What we’re seeing in Europe now is that we’ve seen this change in the way of thinking and now we have visibility. As we move towards 3% of GDP, we now have a five to a decade of growth track,” Heelan told CNBC’s CNBC.Squawk Box Europe” on Monday.

He added: “The next big data point will be the first quarter results and I think we will receive a lot of comments from the company about feature and capability comments.”

As defense spending looks set to soar in Europe, as defense spending emerges Trump’s increasing pressurehe believes that allies overrule the United States for their own safety.

In Germany, lawmakers passed Historic debt reformpaving the way for a huge defense, while British Prime Minister Keir Starmer Guaranteed hiking to UK defence spending.

The EU has also made plans Mobilize up to 800 billion euros (862.2 billion US dollars) Supports regional security.

Asked about Monday’s reaction to the decline in Rheinmetall’s share price, Bank of America’s heelan said: “What you’re seeing today is just an industry that has been very, very much loved by customers, especially in the last three to six months.”

Payment means that hedge funds significantly reduce their overall exposure to a particular market or asset class.

The White House Automatic import from abroadand a 25% tariff on all steel and aluminum products.

Morningstar Stock Research’s Loredana Muharremi said on Monday that even if Trump’s tariffs have been extended to defense-related commodities, the impact on European stocks could be restricted.

“While it is too early to assess the full impact of the new tariffs on the Department of Defense, it is worth noting that Europe remains a net importer of U.S. military defense equipment,” Muharemi told CNBC via email.

“Companies like BAE Systems, Rheinmentall, Thales, Saab and Leonardo have been established – and in many cases have expanded their industrial footprint in the U.S., with potential Trump reelection expected. This local business not only supports their chances of obtaining U.S. defense contracts, but also offers hedging against tariffs.”

– Chloe Taylor of CNBC contributed to this report.