Despite escalating trade tensions and new U.S. tariffs, France’s economy has demonstrated notable resilience, with its defence industry emerging as a significant beneficiary of Europe’s renewed focus on military capabilities.
In the first quarter of 2025, the eurozone economy grew by 0.4%, outpacing the U.S., which contracted by 0.3% during the same period. This marks the first time in nearly three years that the eurozone has surpassed U.S. growth, largely due to American firms stockpiling goods ahead of anticipated tariffs.
France’s defence sector has capitalised on this momentum, recording over €18 billion in export contracts in 2024, its second-best year on record. Major deals included the sale of Rafale fighter jets to Serbia and Indonesia, and Barracuda-class submarines to the Netherlands.
The European Union’s push for greater defense autonomy, spurred by geopolitical tensions and a desire to reduce reliance on U.S. security guarantees, has further bolstered France’s position. A €1.5 billion EU initiative aims to enhance joint military procurement among member states, providing additional opportunities for French defence firms.
With sustained growth and strategic investments, France is well-positioned to overtake the U.S. as a leading defence exporter, reflecting its economic resilience and the shifting dynamics of global defence trade.
