Defence stocks plunge in panic selling as Trump tariffs spark global panic

President Trump's comprehensive global tariff package has triggered a steep drop in defence sector stocks, as markets grapple with the repercussions of his decision to slap a 10 per cent tax on British exports, among other actions.

This move has sparked worries about increased costs and the potential for a scarcity mentality that could push up prices for essential materials in defence manufacturing, as reported by City AM.

"There is just a general sense of panic", stated Daniel Murray, CEO of EFG Asset Management.

He further noted that as the market responds to these trade tensions, "everything is getting killed, even good companies that will likely fare relatively well."

Shares in major UK and European defence companies took a severe hit on Monday, with significant losses seen by BAE Systems, Chemring Group, Qinetiq and Babcock International.

Babcock International's shares plummeted nearly eight per cent, closely trailed by Chemring Group, which dropped by 7.16 per cent.

Babcock declined to comment on the situation.

Meanwhile, British defence powerhouses BAE Systems and Qinetiq saw their shares dip four per cent and 6.41 per cent respectively.

However, a spokesperson for BAE Systems told CityAM: "We have very limited imports into the US and as such we aren't materially impacted by the evolution of US tariff policy in the same way that some other companies are."

Companies across Europe, including Germany's Rheinmetall and Hensoldt, e