Strategic Implications of the US–EU Trade Agreement (28 July 2025): Defence Procurement, Armament Supply Chains, and Transatlantic Industrial Cooperation
On 28 July 2025, the United States and the European Union signed a comprehensive trade agreement that, in addition to addressing tariffs and investment flows, includes provisions with meaningful implications for transatlantic defense cooperation. Although not a formal defense treaty, the agreement sets out a political understanding—rather than a binding legal commitment—that European countries will significantly increase their purchases of U.S. military equipment in the coming years. This development coincides with a broader European effort to raise defense spending in response to evolving security threats, in alignment with NATO objectives. At the same time, it has prompted debate regarding the future of Europe’s strategic autonomy—that is, its capacity to procure and manufacture key defense systems independently. The agreement also signals a shared intention to enhance coordination on export controls and supply chains, with the aim of facilitating the secure and efficient exchange of defense goods and sensitive technologies between the US and the EU.
This report provides an in-depth analysis of the defense-related aspects of the July 28–29, 2025 US–EU trade deal, focusing on armaments procurement, industrial co-production, technology transfer, and export governance.