Guy Savage, owner of Nashville-based Sabre Defence Industries LLC, was detained in London last week after armed officers shot out the tires of his Mercedes.
He is wanted by U.S. authorities investigating illegal weapons trading between 2003 and 2009.
Sabre Defence Industries supplies M16 rifles and .50-caliber machine-gun barrels to the U.S. military.
Savage and four U.S.-based colleagues have been charged with illegal arms trafficking. Prosecutors in Tennessee say they illegally exported firearms components to and from the United States.
Savage is due to appear at City of Westminster Magistrates' Court later Tuesday.