Author: Anna Brand

The alliance between the United States and Germany has been a key part of Western stability for decades. Based on shared democratic values and strong economic ties, it has lasted through many political changes. But the two countries are starting to drift apart on various topics – and the effects could shape global politics for years to come.

But first, let’s take a quick look at the historical tensions between the U.S. and Germany:

Historical Overview of the Tensions Between the U.S. and Germany

17th to 19th century: German immigration to the USA began in the 17th century and continued on. Especially in the 19th century, emigration increased, predominantly from the areas of Baden, Württemberg, Hesse and the Palatinate. These immigrants contributed significantly to the cultural diversity and economic development of the USA.
First and Second World War: During the First World War, Germany and the USA were on opposing sides, which created difficult diplomatic relations. During the Second World War, Germany declared war on the USA on December 11, 1941, which led to direct military conflict.
Post-war period and German Reunification: After 1945 relations developed positively. Partly because the U.S. played a central role in the reconstruction of West Germany through the Marshall Plan. During the Cold War, the USA was also an important ally of the Federal Republic of Germany within NATO. Furthermore, the U.S. supported the German Reunification and promoted the integration of the united Germany into international structures. This cooperation extended to various areas such as the economy, security and culture.
21st century: In more recent time, relations have been strained by events such as the 2003 Iraq War and the presidency of Donald Trump (2017-2021), particularly in matters of trade and security. Under President Joe Biden, relations started to improve again, with a focus on multilateral cooperation.

Cut to the present: We now face other challenges, such as NATO spending, border customs and green economy, that have the potential to divide the two countries.

NATO Spending and Europe’s Military Role

Germany’s military, the “Bundeswehr“, is shrinking, aging and lacking essential equipment due to chronic underinvestment. Despite a €100 billion fund from German Chancellor Olaf Scholz, granted after Russia’s invasion of Ukraine in 2022 – the “Bundeswehr“ is still nowhere near a modern status.

This comes at a very unfortunate time, in which the U.S.‘ commitment to the NATO seems uncertain. President Donald Trump has repeatedly questioned the countries‘ willingness to come to Europe’s defence unless Europe spends far more on its own armed forces. NATO’s Agreement to spend 2% of the national gross domestic product on defence spending, was only hit by Germany in 2024 for the first time since 1991.

This uncertainty also leads other european countries to take preparatory measures for a possible war with Russia – without the U.S..

Border Customs

Furthermore, China and the USA are engaged in a growing head-to-head race to raise customs duties. Even efforts by US Commission President Ursula von der Leyen asking China to find a solution with the USA are not bearing fruit. While not backing down in the negotiations with China, the U.S. also declined the EU’s proposition to abandon all reciprocal tariffs on industrial goods. President Trump’s counter-proposal being that EU states should import more energy from the USA in order to compensate for the current trade deficit.

Due to the fact that Trump wants to impose massive tariffs on all US imports, Germany fears serious consequences for international trade. However, there is also a threat on a national level, which according to current calculations amount to around 15% less export to the U.S..

Green Economy

Furthermore, trade tensions are rising as both countries try to lead the green economy. The U.S. Inflation Reduction Act makes the EU (and Germany) worry that this will put their industries at a disadvantage. More specifically, they are worried about a “subsidy race“ and hindered global cooperation on climate. Whereas experts advise not to enter into this race of subsidiary investments but to align their own industrial policy with their economic, social and strategic needs (e.g. simplification and acceleration of state aid procedures).

Regional and Global Consequences

Germany’s dependency on matters of economy, energy and security on the U.S. aggravates even the smaller disputes and discrepancies. This creates unbalanced discussions in which Germany is continuously at a disadvantage.

All in all, these issues don’t just affect the U.S. and Germany—they matter globally. If the two countries can’t work together, it will be harder to respond to crises in Ukraine, the Middle East, or Asia.

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