Trump Administration Prioritizes Economic Interests in Arms Transfer Strategy

On February 7, 2026, the Trump administration released Executive Order 14383, “America First Arms Transfer Strategy,” signaling a significant shift in U.S. Foreign policy. While presented as a supplement to the 2018 Conventional Arms Transfer (CAT) Policy – which was reinstated in April 2025 under Executive Order 14268 – the new order elevates commercial and economic considerations in arms transfer decisions, potentially at the expense of long-term strategic and national security objectives. This move represents a departure from longstanding U.S. Practice and raises concerns about the coherence of U.S. Security cooperation.

Understanding the Conventional Arms Transfer Policy

CAT policies serve as frameworks guiding the U.S. Government’s review and evaluation of arms transfer decisions. These policies aim to align security cooperation and assistance with broader national interests and objectives. While not legally binding, these executive directives provide insight into the administration’s approach to international affairs and shape the criteria for arms transfer adjudications.

Evolution of U.S. CAT Policies

U.S. CAT policies have undergone relatively infrequent changes since their inception in 1977 under President Carter. President Reagan issued a policy in 1981 that rescinded many of Carter’s restraints. A significant revision followed in 1995 under President Clinton, reflecting the post-Cold War security landscape. In 2014, President Obama’s policy reintroduced restraint and emphasized human rights and governance considerations, building upon historical principles of supporting allies and maintaining a robust defense partnership system.

The Trump Administration’s Impact

The 2018 CAT directive under President Trump marked a turning point, prioritizing the commercial and economic aspects of the U.S. Arms trade alongside traditional national security concerns. This was the first CAT policy to explicitly position the defense industrial sector as a driver of domestic economic development and growth. It also introduced civilian harm mitigation as a policy objective.

President Biden issued a new directive in 2023, emphasizing human rights, international humanitarian law, and restraint. This policy committed the U.S. Government to refrain from arms transfers likely to contribute to atrocities or human rights abuses, using a lower threshold (“more likely than not”) than previous policies requiring “actual knowledge.” Although, the administration’s military support for Israel’s campaign in Gaza demonstrated a continued willingness to prioritize security assistance even with potential human rights implications.

Upon regaining office, President Trump rescinded the 2023 policy and reinstated his 2018 directive in March 2025. Executive Order 14383, issued on February 6, 2026, further amplifies the focus on domestic economic and industrial objectives, effectively reordering CAT policy priorities.

The Significance of Policy Volatility

The increased frequency of CAT policy revisions over the past 12 years reflects a decline in strategic consensus regarding U.S. Arms transfer approaches. Historically, revisions have aligned with changes in the strategic environment while maintaining a consistent view of arms transfers as instruments of statecraft. The recent shifts, however, introduce volatility, hindering strategic coherence, impeding necessary reforms, and exacerbating national security risks. The emphasis on commercial interests undermines efforts to improve the effectiveness of security cooperation and ensure alignment with U.S. National interests.

Conclusion

The frequent revisions to U.S. Arms transfer policy pose a challenge to developing effective and sustainable security cooperation approaches. The shifting metrics make it difficult to assess the efficacy of arms transfers, particularly when the fundamental purpose of the enterprise is in flux. This volatility creates uncertainty among allies as they assess the U.S. Role in their long-term defense planning. A more stable and consistent approach to U.S. Security cooperation policy is needed to ensure arms transfer decisions remain aligned with U.S. National interests in an increasingly volatile global environment.