Overview
- In its formal submission, the U.S. Department of Defense said it could revise Buy American derogations that currently give some EU firms easier access to U.S. contracts.
- The Pentagon argued binding EU preferences would undercut NATO interoperability and collective readiness, as well as the broader transatlantic industrial base.
- The American Chamber of Commerce also cautioned the European Commission against overly strict sourcing requirements in its consultation response.
- The EU already conditions major funding on European content, requiring at least 65% local value under the €150 billion Safe program and the €90 billion Ukraine loan.
- Brussels is set to present a defense-industry plan on Feb. 26, with an update to the 2009 defense procurement directive planned for the third quarter of 2026.