Article

The U.S. government has cautioned the EU over plans to prioritize local defense manufacturers in military procurement amid rising military spending in Europe. The EU's strategies risk retaliation from the U.S., which demands compliance with existing trade agreements that require Europe to purchase significant amounts of American military equipment. A proposed 'Buy European' clause may restrict U.S. access to defense contracts, potentially leading to countermeasures from the U.S. that could impact European economies heavily reliant on American imports.