The tariffs imposed by President Donald Trump could seriously affect the US defense industry, the country’s media warned.
Trump’s New Tariff Policy Threatens Global Defense Cooperation and U.S. Military Production
On April 2, former President Donald Trump announced a sweeping “reciprocal” tariff list, imposing a minimum 10% tariff on goods from over 180 economies, with even higher rates targeting major trading partners, including the European Union (EU). This new policy could have far-reaching implications for international defense cooperation, especially for joint military projects such as the production of the F-35 stealth fighter, advanced air defense systems, and nuclear submarine construction.
Politico raised concerns that these tariffs could disrupt longstanding defense collaborations, which rely on a complex network of suppliers and companies. Bill Greenwalt, a former Pentagon procurement official, warned that the tariffs could lead to supply shortages, retaliatory measures, and increased costs for essential military materials. Greenwalt also predicted that critical supplies could become either prohibitively expensive or inaccessible due to the new tariffs.
The Pentagon’s global network of defense suppliers has taken decades to build, fund, and develop. However, many of these suppliers are now facing tariffs that could significantly delay U.S. weapons production for both the U.S. military and its international partners. If defense contracts and projects are not exempt from tariffs, this could undermine years of collaborative efforts, affecting U.S. military readiness and operational effectiveness.
As a European official noted, Europe’s industrial capacity in defense manufacturing has been improving, and there is a growing push for Europe to reduce its dependence on U.S. components and materials. The official highlighted that Europe intends to become a security provider rather than merely a consumer of U.S. defense technology. This trend could lead to greater European investments in regional manufacturing to circumvent tariff challenges and secure more autonomy in defense production.
Senator Mark Kelly, the ranking member of the Senate Armed Services Committee, highlighted the complexities of defense manufacturing and the potential impact of new tariffs on the costs of U.S. military production. According to Kelly, if defense-related products are subject to tariffs multiple times during their production, it could significantly increase the overall cost of maintaining the U.S. military at its current level of strength. This, in turn, could place a greater financial burden on the U.S. Department of Defense (DoD).
Global tariffs, including 20% on imports from the EU and 10% on goods from Britain and Australia, are also expected to disrupt successful defense cooperation projects. Notably, the F-35 fighter jet program, which involves 20 participating countries, could be affected. This program not only allows countries access to advanced technology but also provides opportunities for local manufacturing of fighter jet components. Other key projects, such as missile defense systems with Norway and Israel, could also face delays and increased costs.
The AUKUS agreement, a trilateral defense pact between Australia, the UK, and the U.S., aimed at developing nuclear-powered submarines, could be particularly vulnerable. As component costs rise due to tariffs, it could hinder the partnership’s progress and affect the development of next-generation defense capabilities.
“The knock-on effects are huge,” Greenwalt cautioned. Contractors may be forced to absorb the rising costs, or attempt to find alternative domestic supplies, but this process could take years to fully adjust. Greenwalt emphasized that the defense supply chain is not something that can be quickly restructured; it requires significant time, effort, and financial investment to adapt to new tariff realities.
