Trump threatens Europe with new arms market restrictions
The Pentagon warned the EU against proposed public procurement directive updates that could limit U.S. defense firms' access to European markets.
According to reports, the Pentagon issued a warning ahead of planned updates to EU public procurement directives, stating strong opposition to any changes that would restrict U.S. industry from participating in national defense public procurements of EU member states. This indicates a tension between the U.S. and Europe regarding defense procurement, as the U.S. administration perceives these potential changes as a move toward protectionism that could exclude American companies while still allowing European firms access to the U.S. market.
The document underscores that implementing provisions favoring European manufacturers in EU legislation is seen as a wrong decision by Washington. The U.S. has threatened to renegotiate bilateral agreements regarding exemptions for "Buy American" provisions, which implies shutting European defense firms out of the U.S. market altogether. This move sets a concerning precedent for transatlantic defense cooperation, which has relied on mutual access to each other's markets.
Furthermore, this situation reflects a paradox in the U.S. approach; while the Trump administration has repeatedly urged Europe to take on a greater share of its defense responsibilities, it doesn’t seem willing to allow American military industry access to European markets. Thus, the proposed changes in the EU could lead to a significant shift in the defense procurement landscape, affecting not only the U.S.-EU relationship but also the broader dynamics of global defense industries.