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US Government Warns EU Against Favoring Local Defense Contractors Amid Military Spending Surge

DEFENSE

The U.S. government has expressed concerns regarding the EU's intention to favor local defense manufacturers as military spending in Europe increases. This includes a 'Buy European' clause in EU procurement that prioritizes European military equipment.

The U.S. warns that such measures could trigger retaliatory actions, potentially restricting U.S. companies' access to European defense contracts. Currently, almost two-thirds of the EU's imported weapons come from the U.S., and the relationship is vital for both sides. The U.S. has indicated it may reassess existing exemptions under 'Buy American' laws if the EU implements these preferential measures, which could strain economic relations and impact the European economy already under pressure.

US Government Warns EU Against Favoring Local Defense Contractors Amid Military Spending Surge
Feb 26, 2026, 6:06 AM

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