USA Threatens to Revoke Trade Privileges for EU Due to Protectionism in Defense Sector

The United States has officially warned the European Union of possible harsh measures in response to attempts to squeeze American companies out of the European arms market.

This was reported by US Ambassador to the EU Andrew Pazder.

Washington is strongly opposed to the inclusion of so-called ‘European preference’ rules in the new version of the EU Defense Procurement Directive 2026.

US officials stress that Brussels’ protectionist policy is damaging the partnership, while the largest European defense manufacturers continue to benefit significantly from free access to the market of the USA.

The State Department and the Pentagon note that artificially restricting competition will hit the budgets of member countries and seriously weaken collective defense within NATO.

“Defense remains an exclusively national competence, so each government must determine its own security priorities,” the statement said.

Diplomats also point to a direct violation of previous agreements. The requirement to purchase exclusively European products contradicts the 2025 joint trade statement and bilateral agreements on mutual defense procurement previously signed by 19 of the 27 EU countries.

If Brussels implements new restrictions, the United States will immediately review all existing exemptions under the Buy American Act for European companies.

In the future, the Pentagon will consider access to contracts on a case-by-case basis and will only approve it when required by Alliance standards.

Earlier, Militarnyi reported that the administration of US President Donald Trump warned the European Union about the consequences of pushing American defense companies out of the European market.

The Americans said they would take retaliatory measures if Brussels added a strict ‘Buy European’ clause to its defense procurement rules, meaning weapons produced exclusively within the EU.

The USA emphasized that it ‘strongly opposes’ restrictions on American companies and rejects ‘protectionist and exclusive policies’ that “drive American companies out of the market.”