Lack of confidence in the United States strengthens European and Asian defense shares

“Wars do not win with superior weapons, but with superior strategy,” says a quote from the 2008 TV series “Star Wars: The Clone Wars”.

However, the strategy now in the market is investing in weapons – specifically, by makers not based in the United States.

In the wake of the Trump administration, the Long Global Alliances sticked, the two countries poured money in their defense budgets, sending defense shares up.

The increasing tide of increased defense spending usually raises all weapons stocks, but European and Asian defense stocks outperform their counterparts in the United States.

While shares were generally sold after US President Donald Trump announced his plan for “mutual tariffs”, European and Asian arms manufacturers are still publishing respected gains on an annual basis, with some 100 % increase.

The veteran and strategic investor told Quantum Strategy David Roche Cnbc that the rise in defense shares outside the United States is due to the low confidence of the United States as an ally.

He pointed out that the organization of US President Donald Trump with Russia in the Russian war of Ukraine, as well as “Betrayal”, President of Ukraine, Voludmir Zelinski Some countries have led to an evaluation that they are no longer able to rely on the United States

Roths chanted Trevor Taylor’s view, director of the Defense, Industries and Society Program at the Royal United Services Institute, a UK -based research center.

Taylor explained that, historically, European governments often tend to buy from the United States because it strengthened the perception that the world’s largest economy “would feel improving about assuming the responsibilities he made as an ally.

(Now) The United States does not seem to want to assume the responsibilities it bears as an ally. Then some commentators ask the question, well, why do they put money in their economy? ” He added.

As such, European countries will tend to buy from European companies, or firm allies such as South Korea, according to Rush, because they have the same strategic goals.

Roche pointed out that international weapons transfer agreements mainly allow the sold country, such as the United States, to control the way the buyer uses the weapons that are being sold, so with the interrogation of the United States, European and Asian countries prefer to buy weapons from makers outside the United States

One example is when Forbes stated in March that the United States has partially stopped supporting its donor F-16 fighters in Ukraine, Disable radar grille Built on the plane.

“If you have an independent defensive policy, you must have an independent military industrial complex. You have to make your own belongings, or get it from someone to your side at the present time,” he said.

In Germany, legislators acknowledged a Reform of historical debtThe road paves the way for a great pride in the defense. UK Prime Minister Kiir Starmer also He pledged to raise Britain’s national spending on defense.

The European Union also made plans Fill up to 800 billion euros (883 billion dollars) To support regional security.

These plans expand the scope of request books in companies such as Marine Systems Maker Thyssenkrup Marine Systems, the Military Ship Department of the Mother Company Thyssenkrup.

CEO Oliver Burkard Tell CNBC again in February It is expected that its customer base will reach a total of three times by the end of the contract.

Burkard said this step shows that “when it comes to the defense budget, there is no longer more or less.”

The German weapons manufacturer Rheinmetall, which is famous for the manufacture of main battle tanks 2 Leopard 2, He said in March She expects to jump defense sales by up to 40 % this year, and expects “large orders of military customers”.

The company said that it was expected to increase sales even without any possible batch of greater regional defensive spending, although it indicated that “in a promising position to play an important role in the upcoming increase in the defensive ability.”

Taylor said these spending raises these Asian defense stocks as well, because European arms makers cannot expand production capacity quickly to meet this sudden demand.

Therefore, they resort to Asian arms suppliers to fill this productive ability, which led to orders from European countries to arms suppliers in Asia.

Since 2022, their South Korean arms makers Receive huge orders from European countries Occupied to expand their arsenals or renew the equipment that was donated to Ukraine.

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

Hanwha Aerospace has received orders from Poland and Romania because of the autonomous K9 jerk in the past two years. In March, the South Korean company I announced the presentation of rights With a value of 3.6 trillion from South Korea, ($ 2.5 billion) won to invest in foreign and home defense facilities, shipbuilding engines and drone engines.

The company, In issuing her rightsHe said he aims to become a “global player” in the field of aviation, shipbuilding and defense.

Singapore St EngineeringWhich makes the military equipment of the city, Guaranteed contracts To produce 155 mm artillery shells for European countries in 2024.

According to March 18 note From the CGS International, Ste “enters a multi -year profitability,” partly due to a large market suspended in international defense, especially in Europe and the Middle East.