Honeywell Aerospace is expanding production of defense technologies designed without restricted U.S. components, responding to European demand for military systems free from Washington's export controls — a shift driven by rising defense budgets and growing concerns that the U.S. could block re-export of sensitive technologies embedded in European weapons.
The Arizona-based supplier has tasked 1,000 engineers in Poland and the Czech Republic to design products that avoid U.S. International Traffic in Arms Regulations, or ITAR. Jim Currier, Honeywell Aerospace's CEO, said in late June the goal is clear: "Part of it is looking, acting, feeling and speaking like a European company." He added that the engineering teams' "main mantra, and drive and edict is to design non-ITAR technology for ... local strategy."
European Defense Spending Drives Demand
Honeywell Aerospace is set to announce a new ITAR-free product for the international defense sector at the Farnborough Airshow in Britain later this month, according to a source. The company declined to comment on the announcement. The push reflects mounting European defense spending and a strategic desire among EU nations to reduce dependence on U.S.-controlled supply chains that could be disrupted by political decisions in Washington.
International sales now account for about 30% of Honeywell's defense business, up from around 18% in 2020. The defense division represents roughly 40% of the company's total revenue and includes navigation systems and actuators for missiles. Currier said the company is using its global footprint to scale ITAR-free navigational technology from its 2024 acquisition of Italy's Civitanavi. "That has been the playbook," he said. "We are developing non-ITAR technologies for use in the EU and overseas for our partners in the Asia-Pacific region, like Japan and Korea."
Geopolitical Tensions Fuel the Shift
While European demand for ITAR-free components has existed for years, geopolitical tensions between the U.S. and its NATO allies are now driving greater urgency. The Canadian government said it was made aware during last year's Paris Air Show of heightened demand from European defense firms for North American suppliers free from U.S. ITAR restrictions. That demand has led Canada to attempt further integration into European supply chains.
Michael Iacovelli, CEO of Toronto-area aerospace and defense components supplier Ben Machine Products, said more than half of its work is now required by clients to be ITAR-free. He noted that none of its work needed to be ITAR-free in 2018. The company said it is also developing non-ITAR technologies for Asia-Pacific partners like Japan and South Korea.
A Broader Industry Trend
The move comes as U.S. companies such as dronemakers have been expanding in Europe, while the U.S. this week floated a new missile maintenance facility on the continent and two defense contractors discussed building ATACMS ballistic missiles for the first time in Germany. Some European defense companies and North American suppliers are expected to discuss demand for parts not governed by U.S. International Traffic in Arms Regulations at the world's largest air show later this month.
Why This Matters:
Europe's push for ITAR-free defense technology isn't just a procurement issue — it's a question of strategic autonomy. If European militaries depend on components that Washington can block at will, the continent's security policy remains hostage to U.S. political shifts. Rising defense budgets across the EU create an opportunity to build industrial capacity that serves European interests, not just American exports. But this also risks fragmenting transatlantic defense cooperation at a time when unity is needed to support Ukraine and deter Russian aggression. The challenge for Europe is to build autonomy without undermining NATO — and for the U.S., to recognize that export controls designed for Cold War adversaries now alienate democratic allies investing billions in their own defense.