Lack of trust in the US enhances European and Asian defense

The quote from the 2008 series “Star Wars:” Clone Wars “goes:” Wars will not win with excellent weapons, but with the highest strategy. “

However, the markets strategy seems to be arms investments – in particular, not in the US.

After the Trump administration’s rumble, long ago, global alliances, countries have poured money into their own defense budgets, sending the defense shares above.

Increasing the increase in protection costs usually raise all weapons reserves, but European and Asian reserves are superior to their colleagues in the US.

While shares are usually sold after US President Donald Trump has announced his plan for “mutual tariffs”, European and Asian weapons manufacturers still place respectable income, some increased more than 100%.

A veterans’ investor and quantum strategy strategy, David Rosh, said CNBC that the growth of protection outside the United States is due to a decrease in US confidence as an ally.

He noted that the restructuring of US President Donald Trump with Russia in Russia-Ukraine war as well as as His “betrayal” of the President of Ukraine Volodimir Zelensky forced some countries to estimate that they can no longer rely on the US

Rosh’s view responds to Taylor, director of the Protection, Industry and Society Program at the Royal Institute of United Services, an analytical center based in the UK.

Taylor explained that historically that European governments are often inclined to buy in the US because it has increased the opinion that the largest economy in the world “feels better in carrying the duties he has made as an ally.

“(Now) that the United States does not seem to want to bear the responsibilities he has as an ally. Then some commentators raise the question, well, why invest in his economy?” He added.

Thus, European countries will tend to buy from European firms or solid allies, such as South Korea, according to Rosh as they have the same strategic goals.

Rosh noted that international arms translation agreements mainly allow the country of sale, such as the US, control how the buyer uses the weapons they sell, so when interviewing US alliances, European and Asian countries, rather

One such example is when in March Forbes reported that the US has partially stopped supporting its donated F-16 fighters in Ukraine, interfere with their radar Built on the plane.

“If you have an autonomous defense policy, you must have a standalone military industrial complex. You must do your things or get it from who is on your side at your time,” he said.

In Germany legislators have passed Historical debt reform. UK Prime Minister Kire Starmer also promised a hike to the UK national expenses.

The European Union also made plans Mobilization up to 800 billion euros (883 billion) to reinforce regional safety.

These plans are expanding book books in companies such as the Major Systems Manufacturer of Thyssenkrupp Marine Systems, the military ship’s parent company Thyssenkrupp.

CEO Oliver Burkhard said CNBC is still in February that he expects his overall customer base by the end of the decade.

Berkhard noted that this step shows that “when it comes to the defensive budget, there is more no restrictions.”

German Weapon Manufacturer Rheinmetall, known by producing Leopard 2 Basic Tanks, – said in March This expects his defense this year to jump up to 40%, predicting “basic orders for the military”.

The increase in sales was expected even without possible increase from the high regional protection costs, the firm notes, although it was noted that “in a promising position it plays an important role in the upcoming opportunity.”

These costs also raise Asian protection because European weapons manufacturers cannot quickly expand production facilities to meet this sudden demand, Taylor said.

Thus, they turn to Asian weapons suppliers to fill this production potential, which led to the orders of European countries to arms suppliers in Asia.

Since 2022 South Korean weapons manufacturers Received huge orders from European countries Seeking to expand their arsenals or replenish the equipment donated to Ukraine.

For example, Aerospace Industries Korea put its FA-50 fighters in Poland after the country donated Ukraine to its Soviet era.

Over the past two years, Hanha Aerospace orders received orders from Poland and Romania for independently passing howitzers. In March South Korean company announced about the right to the rights Cost 3.6 trillion in South Korean victories ($ 2.5 billion) for investments in foreign and domestic defense institutions, shipbuilding and drones.

Company In the issue of issue rightsHe said he was aimed at becoming a “global player” in aerospace, shipbuilding and defense space.

Singapore St Engineeringproducing military equipment for the city-state, Provided contracts produce 155 mm artillery shells for European countries in 2024.

According to A a AR March 18th Note From the CGS International brokerage firm, Stee “goes out for many years”, partly because of the large addressed market in international defense, especially in Europe and the Middle East.

King Mallory, Senior Researcher in the US Based in the USA, Rand. Saying CNBC is another reason why Asian and European defense shares are superior to the United States because the US has always been a great newsletter of defense compared to other countries.

Thus, he said that investors and portfolio managers do not expect a huge shift in the US defense in the US, but when governments immerse money into domestic defense promotions, the huge surge in demand is leading Asian and European shares that are re -evaluated much more radically than US, he explained.

One example is Japan, which watched the stocks increase in its domestic protective players, despite strict weapons export restrictions.

Japan plans to increase protection costs to 2% GDP by 2027, which is traditionally limited to 1%.

As for whether there will be an increase in international protection shares in the pan, all three analysts said that this demand would be maintained, perhaps even over the next 10 years.

According to Roche Quantum Satchym: “This is not a choice between weapons and oil, it is what you have too much butter and there is no weapon, and (demand for defense equipment) will last at least 10 years.”

– CNBC Chloe Taylor contributed to this report.