US-EU Trade Deal on Defence Equipment Raises Concerns
The European Commission has confirmed that the joint framework for an EU-US deal regarding tariffs remains unclear, with no blanket exemption for defence equipment, as reports 24brussels. President Donald Trump had indicated in July that the EU would purchase substantial amounts of defence equipment as part of the agreement, prompting significant scrutiny across Europe.
This announcement has caused unease among European nations eager to reduce reliance on American defence manufacturers. Industry stakeholders are particularly anxious about how the new tariffs will affect the defence sector. A senior EU official stated on Thursday, “Defence equipment will not be excluded from the US tariffs,” but indicated that further tariff exemptions, or “carve-outs,” are anticipated, particularly concerning certain weapon systems and semiconductors.
The framework stipulates that US tariffs on European goods will be capped at 15%, with certain exemptions for goods such as aircraft and parts. Additionally, tariffs on cars and car parts are set to decrease from 27.5% to 15%, contingent upon the Commission proposing an uplift of tariffs on US industrial goods. Both parties are also looking to address issues surrounding overcapacity in the steel and aluminium sectors.
So far, these developments align with the initial announcements made in July. The joint framework also formalizes Trump’s prior statement regarding increased EU spending on American military equipment. “The European Union plans to substantially increase procurement of military and defence equipment from the United States, with the support and facilitation of the US government,” the statement reads.
However, specific details regarding this commitment remain sparse, as the European Commission lacks authority over arms procurement within EU member states, which is a matter of national sovereignty. One EU official clarified that the proposed increase “is certainly not for the Commission to enforce, but it is something that we have discussed in detail with our member states and therefore we were able to frame it as such in the joint statement.”
The official also noted that the framework does not specify a particular amount, rendering the commitment to increase defence and military expenditure rather vague.
