Introduction
The second Trump presidency has placed the German government in a difficult strategic position. For decades, the United States has been Germany's key ally in security and defense. However, amid growing threats from Russia, the Trump administration's confrontational posture towards European allies has heightened concerns about U.S. reliability and its long-term commitment to European security. These developments also have implications for transatlantic defense industrial relations, a core element of defense cooperation with the United States. Many European governments continue to procure a significant share of their conventional defense systems from the United States. But some European governments are concerned that current and future U.S. administrations may exploit Europe's dependence in the security and defense realm as a means of leverage, for example, in trade negotiations.
Initiatives on the EU level reflect a growing political consensus that Europe must strengthen its technological and industrial defense base and autonomy in defense. This policy paper analyzes current trends in transatlantic—and particularly U.S.-German—defense industrial relations to demonstrate that a consistent «Buy European» approach in procurement has yet to emerge. Specifically, the paper will analyze the German government's policy to navigate the complex relationship with the second Trump administration, in which defense cooperation remains a key component; assess trends in transatlantic defense industrial relations since 2022, particularly in the context of the ongoing debate surrounding European strategic autonomy; evaluate these developments in light of the recent EU efforts to strengthen Europe's defense technological and industrial base and promote a «Buy European» approach; and explore the increasing relevance of defense technology for European security, the emerging ecosystem in Germany, and the challenges it faces.
The paper underscores a key strategic dilemma for the German government: on the one hand, in light of the growing threats since 2022, it must ensure that the armed forces acquire defense capabilities critical to European deterrence and defense as fast as possible; on the other hand, Berlin must strengthen the German and European defense industries. Achieving both objectives simultaneously in the short term has been a challenge. In 2025, Germany continues to depend on U.S. suppliers for a number of conventional defense systems and has yet to adopt a consistent «Buy European» approach. At the same time, a dynamic defense tech ecosystem has begun to take shape in Germany, which opens a window of opportunity for a stronger focus on European products in procurement.
To deal with the strategic dilemma in defense procurement, the paper proposes an approach that is mitigating the risks of an over-reliance on the U.S. while contributing to NATO's resilience. The paper advocates for the German government to foster an EU-wide approach instead of pursuing a special path in procurement. This strategy should be based on strengthened risk assessments and a review mechanism to assess critical dependencies on non-European suppliers prior to major procurement decisions. The approach should also include advancing joint European defense projects to address key capability gaps, coordinating major procurement decisions with European partners, and adapting a «Buy European» preference in these processes. This is particularly relevant with regards to defense technology. Through its procurement decisions, the German government should strengthen an innovative and competitive European ecosystem. To contribute to this, the forthcoming defense procurement acceleration law should reduce bureaucratic obstacles for start-ups as well as small and medium-sized enterprises. With efforts to enhance European defense capabilities and capacities, Germany could contribute towards a more balanced relationship within NATO.
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