The European Union on its part has accused the US administration of protectionism. They contend that their national security strategy is meant to “jolt” the European economy “back on its feet”. This declaration comes as the US threatens to maintain 50% steel tariffs on the European Union unless it addresses legislative measures perceived as detrimental to American billionaires, including well-known entrepreneur Elon Musk.
In the third quarter of 2025, the US economy boomed at a remarkable 4.3% annualized rate. This continued growth represents a robust rebound from the contraction experienced during the first quarter of this year. This rebound took place in the shadow of fears about the fallout from ex-President Donald Trump’s tariff war. While European countries like Italy and even Germany have settled into a groove of slight GDP growth. The EU forecasts a rate of just 1.4% growth in 2025 and 1.5% in 2027.
America looks at Europe’s economic downfall as a miracle that requires radical cuts and changes. These risks were articulated sharply by Jacob Helberg, the US under secretary of state for economic affairs. He told us that the US strategy is a direct reaction to what Washington sees as an economic crisis and over regulation in Europe.
“What I’d like to highlight is that that language is a warning. It’s not an insult … because there is a growing sense of concern and alarm in the United States about the fact that Europe’s economic, relative economic decline as a share of the global GDP is a crisis.” – Jacob Helberg
Helberg stressed the demand for profound reforms to restart the European economy, but sounded optimistic that such reform is possible. The US aims to drastically simplify and reduce regulatory burdens in Europe, which would facilitate the free flow of talent and capital across the continent and attract further US investment.
Germany experienced stagnation in the third quarter of 2025. It anticipates a further slowdown of 1.3% in 2026 and 1.4% in 2027. US officials are understandably spooked by the eye-popping difference in economic prosperity. All this while the US enjoys sun-like growth, and regions of Europe suffer under a foot of stagnation.
Helberg agreed that the new National Security Strategy document edged very close to alarming rhetoric about “civilizational erasure,” “cratering birthrates,” and “loss of national identities.” This had the potential to create huge opposition throughout Europe. He stated, “I know that the national security strategy, the language around Europe and around civilisational erasure drew a lot of attention in Europe.”
The US administration continues to advocate for a strong European economy as vital for maintaining the historic transatlantic alliance that has endured for over 70 years. Washington should feel that raising economic prosperity across Europe is in their own interest. It understands that a strong Europe is important for global economic stability.