Saudi Press

Saudi Arabia and the world
Thursday, Feb 26, 2026

EU Reportedly Considering 'New Legal Tool' as Response to Biden's 'Buy American' Order

EU Reportedly Considering 'New Legal Tool' as Response to Biden's 'Buy American' Order

In late January, POTUS inked the so-called "Buy American" order, an executive action that Joe Biden said would help "rebuild the backbone of America: manufacturing, unions, and the middle class".

In the coming weeks, Brussels may take a countermeasure to press EU member states to "Buy European", in retaliation for Washington's "Buy American" drive, Politico reports.

According to the US news outlet, the so-called International Procurement Initiative is touted as "a new legal tool" that stipulates sticking to the concept of "reciprocity" in major public contracts to shore up the EU's industrial giants.

The new law aims "to effectively shut out companies from countries where European businesses are barred from tenders, leveraging the EU's giant €2 trillion [$2.4 trillion] procurement market in everything from highways and trains to public IT systems", Politico underlined.


The news outlet cited unnamed sources as saying that the International Procurement Initiative is expected to provide Brussels with more authority "to force Washington to keep its market open".

The law will allow the European Commission to investigate whether certain procurement markets in countries outside the EU are closed to the bloc's bids. If Brussels concludes that those markets are closed, it will start consultations to make local authorities open them, according to the sources.

They added "should that fail, the Commission would then decide whether to propose a 'score adjustment' — essentially making bids from the penalised country more costly through a points-based regime — or to completely exclude bids from companies based in that country".

EU Trade Boss Vows to Assess Biden's 'Buy American' Push for Compliance With WTO Rules


The comments come after European Commissioner for Trade Valdis Dombrovskis told Politico in February that the EU is concerned about the Biden administration's push to implement its "Buy American" plan.

Dombrovskis pledged that the EU would keep a watchful eye on whether preferential treatment for US contractors working on public projects was in line with Washington's international obligations. At the same time, the commissioner kept mum on whether the Biden administration is breaking World Trade Organisation (WTO) rules with the "Buy American" mantra.

"As regards 'Buy American', this is something which will require some more in-depth assessment, what are the exact implications, what are the implications for EU companies, what does it mean for US commitments in the WTO framework", Dombrovskis noted.

He spoke after US President Joe Biden signed an executive order on 25 January to strengthen domestic manufacturing and create a spate of markets for new technologies. He told reporters before signing the "Buy American" order that the US "can't sit on the sidelines in the race to the future" because its competitors "aren't waiting".

Last summer, then-White House trade adviser Peter Navarro accused then-presumptive Democratic presidential candidate Biden of trying to copy part of former President Donald Trump's 2016 economic plan.

"He's just blatantly ripping off the president's 'Buy American' agenda […]", Navarro told Fox News at the time, describing Biden as a "poll-driven plagiarist".

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
SECRETARY RUBIO on IRAN: Iran poses a very great threat to the United States, and has for a very long time.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Saudi Arabia’s Coffee Renaissance Gains Momentum as Investment and Heritage Drive Industry Growth
Saudi Shipping Leader Bahri Expands Fleet as Tanker Rates Approach $200,000 a Day
Saudi Arabia Advances First National Urban Policy Through High-Level Leadership and Institutional Alliances
Major Life Sciences Summits to Spotlight Saudi Arabia’s Rise as Regional Biotech and Pharma Hub
Saudi Arabia Reframes Red Sea and Horn of Africa Strategy Amid Rising Security and Trade Stakes
Saudi Arabia Recalibrates Its Role in Shifting Regional and Global Power Dynamics
Saudi Retail Signals to Global Brands: Localise or Lose Ground in a Rapidly Evolving Market
Saudi Arabia Looks to Human Capital Investment to Unlock Demographic Dividend
Saudi Arabia and Iran Increase Oil Exports Amid Escalating Middle East Tensions
Saudi Data Protection Authority Intensifies Enforcement Under Personal Data Law
Saudi Arabia Raises Oil Output and Exports Amid Contingency Planning Over Iran Tensions
USS Gerald R Ford Arrives in Souda, Crete
Saudi Sovereign Wealth Fund Unit Expands Push Into Global Private Credit
Saudi Arabia Eases Headquarters Rules to Attract More Foreign Firms
Saipem Secures Major Offshore Pipeline Contract in Saudi Arabia
Saudi Arabia’s Targeted Oil Export Cuts to the US Seen as Strategic Signal Amid Global Supply Glut
Nemetschek Arabia Signs Strategic MoU with Saudi Facility Management Association
Gulf Markets Close Mixed as Saudi Shares Slip on Budget Deficit Concerns
Saudi Arabia Posts Largest Quarterly Budget Deficit in Years Amid Weaker Oil Revenues and Higher Spending
U.S. Lawmaker Urges Safeguards on Saudi Civil Nuclear Deal as Trump Administration Advances Agreement
Saudi Arabia and Gulf Allies Rally Behind Kuwait in Escalating Maritime Border Dispute with Iraq
Universal Aviation Secures License to Operate and Manage New General Aviation Terminal in Dammam
Tucker Carlson’s Saudi Arabia Remarks Spark Debate Over Israel Stance
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
President El-Sisi Holds Strategic Talks with Saudi Crown Prince in Riyadh
Lucid Unveils Up to $12,000 Incentive for Air and Gravity Models in Saudi Arabia
Saudi Arabia Enters Global AI Partnership, Expanding Its Role in International Technology Governance
Saudi Arabia’s Landmark U.S. LNG Agreement Signals Major Strategic Shift
Saudi Arabia Accelerates Global Gaming Push with Billion-Dollar Deals and Expanded PIF Mandate
Saudi Arabia Reports $25.28 Billion Budget Deficit in Fourth Quarter of 2025
Alvarez & Marsal Tax Establishes Dedicated Pillar Two and Transfer Pricing Team in Saudi Arabia
United States Approves Over Fifteen Billion Dollars in Major Arms Sales to Israel and Saudi Arabia
Pre-Iftar Walks Gain Momentum as Ramadan Wellness Trend Spreads
Middle East Jackup Rig Fleet Contracts Further After Saudi Drilling Suspensions
Türkiye and Saudi Arabia Prepare to Sign Five Gigawatt Renewable Energy Deal at COP31
King Mohammed VI Congratulates Saudi Leadership on Founding Day, Reaffirming Strategic Ties
US Envoy Huckabee Clarifies Remarks on Israel After Expansionism Controversy
Saudi Arabia Introduces Limited Exceptions to Regional Headquarters Requirement for Foreign Firms
Saudi Arabia Joins Global Partnership on Artificial Intelligence, Elevating Its Role in Shaping AI Governance
Saudi Arabia and Arab States Mobilise Diplomatically After U.S. Envoy’s Israel Remarks
Cristiano Ronaldo Reaffirms His Commitment to Saudi Arabia Amid Transfer Speculation
Proposed US-Saudi Nuclear Deal Raises Questions Over Uranium Enrichment Provisions
Saudi Arabia Sends 81st Aid Flight to Gaza as Humanitarian Air Bridge Continues
Global Games Show Riyadh 2026 Positioned as Catalyst for Saudi Arabia’s Vision 2030
×