High-Flying Defense Stocks Sink as Tariffs Upend Supply Chains
Rheinmetall slid as much as 27% before quickly paring the decline to about 8%.
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Europe’s defense and aerospace stocks plunged on fears that US tariffs could upset the industry’s supply chains, and as investors booked profits on some of the region’s best-performing shares of 2025.
German tank and ammunition maker Rheinmetall AG slid as much as 27%, the steepest one-day drop ever, before paring the decline to less than 5% as the company’s chief executive officer bought up shares at a discount. Planemaker Airbus SE and engine firm Rolls-Royce Holdings Plc both slid as much as 14% before trimming the moves.