US and EU face strategic divergence in transatlantic relations

The transatlantic partnership, a cornerstone of the global order since World War II, is facing significant strategic disagreements between the United States and the European Union. Key areas of friction include global trade balances, defense spending, China policy, and energy security.

Within NATO, tensions persist regarding burden-sharing, with the US demanding that European allies meet defense spending commitments of at least 2% of their GDP. In response, the EU is pursuing strategic autonomy to increase its self-defense capabilities and reduce dependence on US political shifts or its focus on the Indo-Pacific region.

Economic policies are also diverging, as US regulations promoting green transitions and domestic production raise concerns about unfair competition for European manufacturers. Furthermore, approaches toward China differ, with the US favoring strict economic and technological deterrence, while the EU seeks to balance China as both a commercial partner and a systemic rival.