Europe Flirts with a “Buy European” Era
trade-wars
As its global manufacturing share slides and China and the US both subsidise heavily, the EU is turning to ‘Buy European’ procurement rules — security-framed protectionism with real risks of retaliation.
The EU is adopting a “Buy European” policy that favours EU-made products in government procurement and industrial support for strategic sectors such as defence, clean tech, and AI. The shift reflects Europe’s declining share of global manufacturing (down from 25% to 20%), competition from China’s dominance in sectors like solar panels and batteries, and the aggressive subsidies of the US Inflation Reduction Act. Framed as a security measure rather than protectionism, the policy could nonetheless squeeze out US and UK suppliers and risks triggering retaliation — another sign of the drift from open-market globalisation toward bloc-based economic strategy.
Originally published on Substack, February 13, 2026.