NATO and the broader relationship with Europe have anchored American foreign policy since 1945. Both the value of the alliance and the fairness of its cost distribution are now openly debated on both sides of the Atlantic.
NATO members committed to spending at least two percent of GDP on defense. Compliance was uneven for many years and has risen substantially since 2022, though what counts toward the target and whether it is the right measure both remain contested.
The European Union is a separate institution from NATO with overlapping but not identical membership. Trade, technology regulation, and data rules run through the EU, while collective defense runs through NATO.
European regulation in technology, privacy, and competition frequently affects American firms directly, making transatlantic disputes as much regulatory as military.