The European rearmament push is creating tension between the EU and NATO. Brussels is overhauling its defense industrial policy, stepping up production to meet both US demands for greater military spending and the threat from Russia.

But NATO — where Washington plays a leading role — is skeptical of the EU’s “Buy European” approach, the Financial Times reported, while Europe is keen to reduce reliance on the US in the face of President Donald Trump’s hostility. European defense money is flowing: A $90 billion EU loan to Ukraine is expected to be agreed soon, with the new Hungarian government lifting its block, and Germany has agreed arms deals including a $300 million order for Rheinmetall drones.