Updated February 6, 2023
U.S.-European Relations in the 118th Congress
An Evolving Relationship
challenges—from promoting stability in various regions
Since the end of the World War II, successive U.S.
(including the Balkans, Afghanistan, and Africa), to
Administrations and many Members of Congress have
countering terrorism and cybercrime, to addressing Russia’s
supported a close U.S. partnership with Europe. Often
first invasion of Ukraine in 2014. Historically, U.S.-EU
termed the transatlantic relationship, the U.S.-European
cooperation has been a driving force in liberalizing world
partnership encompasses the NATO alliance, relations with
trade. Experts point out that the well-honed habits of U.S.-
the European Union (EU), and extensive bilateral political
European political, military, and intelligence cooperation
and economic ties. Despite periodic tensions over the past
are unique and cannot be easily replicated with other
70-plus years, U.S. and European policymakers generally
international actors. U.S. engagement in Europe also helps
have valued the transatlantic partnership as serving their
limit Russian, Chinese, or other possible malign influences.
respective geostrategic and economic interests. During the
At times, some in the United States have expressed
Trump Administration, U.S.-European relations were
frustration with aspects of the transatlantic relationship.
strained by President Trump’s strident criticism of NATO,
Previous U.S. Administrations and many Members of
the EU, and key European countries, as well as by policy
Congress have criticized what they view as insufficient
divisions on issues ranging from China and Iran to arms
European defense spending and burden sharing in NATO,
control, climate change, steel and aluminum tariffs,
and some have questioned the costs of the U.S. military
managing the Coronavirus Disease 2019 (COVID-19)
presence in Europe. U.S. policymakers have long-standing
pandemic, and the role of multilateral institutions.
concerns about EU regulatory barriers to trade. President
European officials welcomed Biden Administration efforts
Trump was particularly forceful in calling for greater
to decrease tensions. The launch of Russia’s war against
European defense spending and in criticizing EU trade
Ukraine in 2022 has bolstered U.S.-European ties but also
practices as unfair and damaging to U.S. interests.
raised new challenges. Other foreign policy and trade
Advocates of this approach maintain that it led to greater
differences persist as well. The first session of the 118th
European efforts to spend more on defense and address
Congress may evaluate current U.S. interests in Europe,
U.S. trade concerns.
implications of Russia’s aggression in Ukraine, and
prospects for future U.S.-European cooperation.
Biden Administration Policies and War in Ukraine
Upon entering office in 2021, the Biden Administration
Transatlantic Relations and U.S. Interests
prioritized bolstering relations with Europe and rebuilding
U.S. policymakers have long regarded both NATO and the
trust. President Biden expressed strong U.S. support for
EU as crucial to maintaining peace and stability in Europe
NATO and its Article 5 mutual defense commitment and
and stymieing big-power competition that cost over
pledged to work with the EU and European governments on
500,000 American lives in two world wars. The United
common global concerns. Biden Administration officials
States spearheaded NATO’s creation in 1949 and
viewed cooperation with European democracies as key to
encouraged the European integration project from its
countering challenges posed by China, Russia, and other
inception in the 1950s. During the Cold War, NATO and
authoritarian governments. European leaders welcomed the
the European project were considered essential to deterring
renewed U.S. commitment to multilateralism, exemplified
the Soviet threat. With strong U.S. support, NATO and the
by President Biden’s decisions to reverse certain Trump
EU have enlarged since the 1990s, extending security and
Administration policies and rejoin the World Health
prosperity across the European continent.
Organization and the Paris Agreement on combating
climate change. At the same time, some tensions remained
The U.S. and European economies are deeply intertwined.
and new controversies emerged, including in relation to the
According to U.S. Bureau of Economic Analysis data, the
U.S. troop withdrawal from Afghanistan in August 2021
transatlantic economy—including the 27 EU member states
and the Australia-UK-U.S. security pact for the Indo-
and non-EU countries such as the United Kingdom (UK),
Pacific (known as AUKUS) announced in September 2021.
Norway, and Switzerland—typically generates close to $6
trillion per year in foreign affiliate sales and directly
In 2022, Russia’s war against Ukraine largely dominated
employs around 10 million workers on both sides of the
the U.S.-European agenda and strengthened transatlantic
Atlantic. The United States and the EU are each other’s
solidarity. The United States, NATO, the EU, and nearly all
largest overall trade and investment partners.
European governments strongly condemn Russia’s actions,
steadfastly support Ukraine’s territorial integrity, and
U.S. leadership of NATO and cooperation with the EU has
provide military and/or economic aid to Ukraine. U.S. and
helped to foster democratic and prosperous European allies
European officials are coordinating security assistance to
that, in turn, have bolstered U.S. foreign and security
Ukraine, including a January 2023 decision to provide
policies and the multilateral trading system. The United
advanced U.S. and German battle tanks. The United States
States and Europe have worked together on many common
and many NATO allies also have increased military
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U.S.-European Relations in the 118th Congress
deployments to Central and Eastern Europe to deter further
Ukraine has reinforced the importance of the transatlantic
Russian aggression and reinforce the alliance’s defense
partnership and its combined political and economic clout.
posture. The Biden Administration and many in Congress
welcomed decisions by Finland and Sweden in May 2022
Issues for Congress
to seek NATO membership (to date, all NATO allies except
Potential areas in transatlantic relations for deliberation in
Hungary and Turkey have granted final approval to Finland
the 118th Congress include the following:
and Sweden joining the alliance).
Russia’s War Against Ukraine. Many in Congress
The United States, the EU, the UK, and other allies have
have expressed interest in European military and
cooperated extensively on imposing sanctions on Russia.
financial support for Ukraine. Congress may evaluate
The Biden Administration supports EU efforts to end its
U.S. and European assistance to Ukraine and the degree
dependency on Russian energy imports and is working to
of U.S.-European coordination and burden sharing.
help boost liquefied natural gas shipments to the EU. Some
Congress also may be interested in examining the
experts caution that transatlantic unity against Russia could
conflict’s implications for transatlantic security and
fray as the war in Ukraine continues, as many European
defense relations, U.S.-European cooperation on energy
countries struggle with high energy costs and inflation, and
policies, and Ukraine’s integration into Euro-Atlantic
as some in Europe begin to consider requirements for future
institutions. (Ukraine aspires to join NATO and was
peace negotiations for Ukraine or how to manage relations
named an official EU candidate in June 2022.)
with Russia in the longer term.
Future of NATO. NATO’s 2022 strategic concept
Revitalizing U.S.-EU economic ties has been another
identifies Russia as the most significant threat to allied
priority for the Biden Administration. In 2021, the United
security, emphasizes NATO’s collective defense role,
States and the EU reached an agreement to address a long-
and addresses a range of other challenges facing the
standing dispute over civil aircraft subsidies and a deal on
alliance, including China, disruptive technologies,
the steel and aluminum tariffs imposed on the EU by the
hybrid threats, terrorism, and climate change. Congress
Trump Administration. A U.S.-EU Trade and Technology
may examine these issues as well as future U.S. goals
Council (TTC), launched in 2021, focuses on issues such as
for NATO, the U.S. force posture in Europe, and
emerging technologies, supply chain security, and digital
ongoing allied efforts to increase defense spending.
governance. The United States views the TTC, in part, as a
U.S.-EU Agenda. In addition to U.S.-EU cooperation
vehicle for U.S.-EU cooperation on challenges posed by
on Ukraine and Russia, Congress may assess the IRA’s
China and other nonmarket economies; recent TTC
potential impact on U.S.-EU relations and efforts to
meetings have discussed U.S.-EU export controls and other
enhance digital and technology policy cooperation
sanctions on Russia. The Biden Administration also has
through the TTC and other initiatives. Congress also
reached a new commercial data transfer arrangement with
may consider how issues facing the EU—including a
the EU to replace the Privacy Shield framework (which the
difficult economic climate, democratic backsliding in
EU’s top court invalidated in 2020 on grounds that it did
some EU members, and EU foreign policy and defense
not meet EU data protection standards).
ambitions—could affect the U.S.-EU partnership.
U.S. tax credits for the purchase of electric vehicles and
Brexit. Congress may review the implications of
other clean energy subsidies in P.L. 117-169 (commonly
Brexit—the UK’s 2020 withdrawal as an EU member—
known as the Inflation Reduction Act of 2022, or IRA)
for U.S.-UK and U.S.-EU relations, for NATO, and for
have sparked new trade frictions. The EU contends that
the Northern Ireland peace accord (its 25th anniversary is
certain measures in the IRA could discriminate against EU
in April 2023). Some in Congress support a future U.S.-
firms and breach multilateral trade rules. The Biden
UK free trade agreement; the Biden Administration has
Administration asserts that EU companies could benefit
not resumed talks begun by the Trump Administration.
from parts of the IRA and has proposed some flexibilities in
recent implementation guidance. A U.S.-EU task force on
China. The Biden Administration has sought European
the IRA is addressing ongoing EU concerns. Meanwhile,
support in addressing strategic, economic, and human
some U.S. officials and business interests express concern
rights challenges posed by China. The Biden
that new EU digital trade and competition rules could
Administration has restarted a U.S.-EU dialogue on
unfairly target large U.S. technology firms.
China (begun by the Trump Administration), launched
U.S.-EU consultations on the Indo-Pacific, and urged
Managing relations with China may test the transatlantic
NATO to address the implications of China’s rise for
partnership as well. European views on China have
transatlantic security. Congress may consider the
hardened in recent years and have come to mirror more
possibilities for U.S.-European policy coordination
closely U.S. concerns about China’s growing political and
toward China and potential obstacles.
economic influence. At the same time, many in Europe
remain wary about a possible new U.S.-China “Cold War”
Also see CRS Report RS21372, The European Union:
and are reluctant to antagonize a major economic partner.
Questions and Answers, CRS Report R47095, U.S.-EU
Trade Relations, and CRS In Focus IF12277, Russia’s War
European concerns also exist about ongoing U.S. political
on Ukraine: U.S. Policy and the Role of Congress.
polarization and whether the United States will remain a
reliable international partner. Some European officials
Kristin Archick, Specialist in European Affairs
argue that Europe must be better prepared to address future
challenges—both in Europe and beyond—on its own. At
IF12302
the same time, for many Europeans, Russia’s war against
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U.S.-European Relations in the 118th Congress
Disclaimer
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https://crsreports.congress.gov | IF12302 · VERSION 2 · UPDATED