American defense companies plan European production shift to bypass US weapons restrictions

Facing mounting challenges from restrictive US trade policies, major defense manufacturers are exploring European production alternatives to maintain global competitiveness and support international defense needs.
ukraine receives initial batch dutch f-16s more follow coming months ukrainian air force's f-16 fighter jet august 2024 telegram/zelenskyy знімок екрану з 2024-08-04 15-40-38
Ukrainian Air Force’s F-16 fighter jet in Ukraine. August 2024. Screenshot: Telegram/Zelenskyy.
American defense companies plan European production shift to bypass US weapons restrictions

During recent meetings, leaders of major American defense companies have discussed plans to relocate production to Europe to avoid restrictions tied to the US President Donald Trump’s administration’s policies, says Chairman of the New Energy of Ukraine Alliance Valerii Borovyk, UkrInform reports.

Reports have emerged that the US defense corporation Lockheed Martin may face billions in losses after a number of countries refused to purchase F-35 aircraft due to the US trade wars, US President Donald Trump’s foreign policy, and threats to invade Canada and Greenland. Meanwhile, Airbus is promoting Eurofighter Typhoon Tranche 5 as an alternative to F-35s.

His claims come during an online segment at the Ukraine’s Role and Place in Shaping the European Security and Defense System roundtable.

The military expert mentions that he is currently in Europe, where he held meetings with representatives from several leading global defense companies from the US, Poland, the UK, and Germany.

Borovyk adds that while he could not reveal the specific names of the companies, he had met with the leadership of one of the largest American companies in the world.

“They are all currently thinking about relocating production to Europe. They understand that they are facing significant problems obtaining export permits for their products. Therefore, everyone is considering how to help Ukraine effectively, while also figuring out how to avoid the impact of their own administration’s policies,” he explains.

According to him, American arms manufacturers are currently exploring the possibility of “integrating with others” and setting up production in Europe—”not in Ukraine, but in neutral countries”—so they can contribute to the Russian-Ukrainian war with their technologies and continue to develop them.

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