EU announces major military equipment procurement from US under new trade deal

As part of the deal, the EU will purchase $750 billion in U.S. energy and invest a further $600 billion in the United States by 2028. These commitments are expected to boost U.S. manufacturing, enhance energy dominance, and reduce Europe’s dependence on less stable sources.

“The European Union agreed to purchase significant amounts of U.S. military equipment,” the White House confirmed, underlining the defence dimension of the trade pact. This large-scale procurement forms a key part of the agreement’s broader commercial framework, which includes investments in sectors such as energy and semiconductors.

The agreement will eliminate all EU tariffs on U.S. industrial goods, offering extensive market access for American producers. It also introduces a 15% tariff on EU imports of autos, pharmaceuticals, and semiconductors, while existing tariffs on steel, aluminium, and copper remain unchanged.

“This colossal deal will enable U.S. farmers, ranchers, fishermen, and manufacturers to increase U.S. exports, expand business opportunities, and help reduce the goods trade deficit,” the White House stated. The arrangement also promises to ease non-tariff barriers, particularly those that have posed difficulties for small and medium-sized American exporters.

The agreement will streamline sanitary requirements for U.S. pork and dairy exports and remove digital trade barriers, including a commitment from the EU not to impose network usage fees. It also ensures that the benefits of the deal will apply only to the U.S. and EU, preventing third-party countries from gaining indirect advantages.

President Trump hailed the agreement as a landmark achievement. “Other American Presidents have tried and failed to reach a significant trade deal with the European Union,” he said, adding, “With this latest deal, President Trump has once again proven that bold leadership, economic strength, and unwavering resolve deliver results no other leader could achieve.”

The deal also enhances joint efforts on economic security, including cooperation on investment reviews, export controls, and efforts to counter non-market policies of other global actors. President Trump described the agreement as a reaffirmation of America’s status as the “premier destination for advanced manufacturing and industrial investment.”

In conclusion, the trade deal not only opens up new economic opportunities but also strengthens strategic defence ties between the United States and Europe. The inclusion of extensive EU purchases of American military equipment marks a significant step in deepening transatlantic cooperation.

Sources:

The White House

European Commission