Made in Europe Supply Chain Integration Simulator & Tariff Impact Calculator

Policy Levers v2026.2

Scenario Presets

Regulatory Alignment Depth 85%

Harmonization of defense design standards, munitions testing, and dual-use certification protocols.

Local Content Threshold 60%

Minimum EU/UK domestic value-add required before non-member tariffs and procurement exclusions trigger.

Joint Procurement Index 75

UK integration scale into European Defence Fund (EDF) joint projects, radar consortiums, and aircraft platforms.

Baseline Bilateral Trade €42.5B

Annual gross value of cross-border defense components, aero-engines, and advanced electronics.

Integration Score

80.0%

Weighted bilateral index

Friction Reduction

41.2%

Cross-border customs delta

Tariff Exposure

€1.82B

Potential residual duty burden

Net Output Variance

+5.8%

Factory floor capacity shift

Compliance Cost Index

Low-Moderate

Rules of origin complexity

Cross-Border Defense Supply Chain Network Flow

UK Defense Hub EU Transshipment / OCCAR European Tier-1 Suppliers

Strategic Policy Appraisal & UK-EU Negotiation Stance

Under John Healey’s proposed strategic carveout, integrating British primes into the EU’s ‘Made in Europe’ defense fund stabilizes tier-1 aerospace supply corridors across the English Channel. Elevated regulatory alignment to 85% mitigates costly dual-testing certifications, compressing customs bottlenecks by 41.2% while capping aggregate cross-border tariff exposure to €1.82B.

Verified Negotiation Directive Summary

Policy Title: Healey Proposal: UK Defense & Industrial Policy Integration
Sector: Defense & Advanced Manufacturing | Status: Modeled & Verified
Baseline Trade: €42.5B | Alignment: 85% | Local Content: 60% | Procurement: 75