EU Leaders to Boost Defence, Competitiveness Amid U.S. Trade Tensions

European Union leaders are set to strengthen the bloc’s military and economic competitiveness in response to U.S. tariffs and concerns over Washington’s future defence commitments. At a summit on Thursday, all leaders except Hungary’s Viktor Orban are expected to reaffirm their support for Ukraine and call on Russia to demonstrate political will to end the war. Ukrainian President Volodymyr Zelenskiy will address the summit via video link, as EU leaders pledge continued financial and military backing for Kyiv.

The leaders will discuss proposals to enhance military spending, promote joint defence projects, and increase the purchase of European-made arms. France strongly supports a buy-European approach, though some officials warn against excluding non-EU suppliers from the interconnected global defence industry. The summit will also focus on ensuring the EU remains competitive in the global tech race, tackling regulatory burdens, and advancing financial market integration.

While not officially on the agenda, recent U.S. tariffs on steel and aluminium are expected to feature in discussions, given the escalating trade tensions. The EU retaliated against the tariffs, prompting former U.S. President Donald Trump to threaten heavy duties on European wine and spirits, with additional measures possibly coming in April. Leaders remain divided on certain economic policies, including financial market supervision, but are committed to progress despite ongoing challenges.

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