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Investing.com -- European defense stocks on Monday suffered a significant drop during a wide-ranging market selloff triggered by the ongoing tariff war.
Among the stocks that took a hit, Germany’s Rheinmetall AG (ETR:RHMG) was down 10.34%, France’s Thales (EPA:TCFP) SA ADR (OTC:THLLY) fell 7.1%, Germany’s Hensoldt Ag (ETR:HAGG) dropped 10.65% and Italy’s Leonardo SpA was down 9% as of 5:20 AM ET (9:20 GMT).
This sector, which has been the region’s best performer this year, felt the impact as investors moved away from risk assets.
European stock markets extended last week’s decline, as concerns mounted over escalating trade tensions. U.S. President Donald Trump announced a 10% universal import tariff last week, which took effect on April 5.
Late last week, China also announced an additional 34% tariff on all U.S. imports, while the EU is reportedly weighing its first round of retaliatory duties on approximately $28 billion worth of American products.
Additional, steeper tariffs targeting key trade partners, including China and the European Union among others, are scheduled to be implemented on April 9.