The Shifting Sands of Transatlantic Defense: US Pressure on European Arms Procurement
Nearly all European Union member states are currently navigating a contentious and challenging policy: rearmament. Driven by increased geopolitical tensions and, initially, pressure from the Trump administration to raise NATO contributions, Europe is accelerating its military build-up. Russia is consistently cited as the primary antagonist in these narratives, though consideration is growing regarding potential future threats from other global powers.
US Objections to European Defense Strategy
The US government, under the Trump administration, has directly intervened in the European debate, submitting formal observations regarding the revision of the Defense and Sensitive Security Procurement Directive. These observations, available here, express strong opposition to any measures that would prioritize European companies in arms procurement, potentially disadvantaging US firms.
The message from Washington is clear: while supporting European rearmament, the US will retaliate if EU member states favor each other in defense contracts. Any limitations on US companies’ participation in European military tenders could trigger reciprocal measures from Washington.
The Core of the Dispute: Industrial Base and Reciprocity
The US supports strengthening Europe’s defense industrial base, but only if it doesn’t weaken the transatlantic industrial base or compromise collective supply capabilities. Washington “firmly opposes any modification of the Directive that limits the ability of US industry to participate in national defense procurement by EU member states.” Protective policies are deemed “the wrong way forward,” especially given the continued access European companies have to the US market.
A key concern is the potential inclusion of a European preference clause within the Directive. While such language has appeared in individual EU programs, codifying it into law would directly impact national budgets and alter established balances.
Existing European Measures and the SAFE Program
The existing SAFE program, a €150 billion instrument based on loans for arms purchases, already mandates that at least 65% of acquired equipment originate from European suppliers. Funding for Ukraine, through a €90 billion loan, also includes this 65% threshold. The upcoming revision of the procurement directive, expected in the third quarter of 2026, could extend this principle to national procurement, prompting the US response.
Europe’s Structural Dependence on US Arms
For decades, approximately two-thirds of European arms imports have come from the United States. Reversing this dependence, or even significantly reducing it, requires substantial time, investment, and rebuilding of European production capacity. This situation echoes broader efforts to “de-Americanize” certain sectors, like IT platforms, but these remain largely confined to national initiatives.
This interaction between the European Commission and the US Department of State and Pentagon reflects a broader trend towards reducing reliance on an ally increasingly perceived as unreliable, citing examples like tariffs, the Greenland issue, and the influence of figures like Elon Musk and Steve Bannon in European politics.
Potential US Retaliation: “Buy American” Provisions
The US warns that adopting European preference measures would likely trigger a review of all general exemptions and exceptions to “Buy American” laws within existing bilateral Reciprocal Defense Procurement Agreements (RDPAs). Currently, 19 of the 27 EU member states have signed such agreements with Washington.
These agreements allow European companies like Leonardo and Rheinmetall to compete for some US supply contracts and access the US market. The US document suggests that, in response to EU protectionism, these exemptions would be reconsidered, potentially limiting European access to the US defense market and prioritizing interoperability within NATO.
Washington also points to a 2025 US-EU trade communiqué, where the Commission committed to “substantially increase purchases of US military equipment and defense goods” and “deepen transatlantic industrial cooperation for defense.”
FAQ
Q: What is the Defense and Sensitive Security Procurement Directive?
A: It’s a set of EU rules governing how member states procure defense and security equipment.
Q: What are RDPAs?
A: Reciprocal Defense Procurement Agreements are bilateral treaties allowing companies from signatory countries to compete for defense contracts in each other’s markets.
Q: What is the SAFE program?
A: It’s a €150 billion EU instrument providing loans to member states for purchasing military equipment.
Q: What is the 65% threshold?
A: It’s a requirement within the SAFE program and Ukraine funding that at least 65% of purchased equipment must come from European suppliers.
Did you know? The US has consistently been the largest supplier of arms to Europe for decades, creating a significant dependency that the EU is now attempting to address.
Pro Tip: Understanding the interplay between EU defense initiatives and US trade policy is crucial for businesses operating in the defense sector.
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