Transatlantic Relations in an Era of Upheaval

Why It Matters

The shifting dynamics between the U.S. and Europe over energy security, trade, and Middle‑East conflicts will dictate the durability of the transatlantic alliance and shape global economic stability.

Key Takeaways

• Europe seeks diplomatic role securing Strait of Hormuz amid US pressure.
• EU energy vulnerability highlighted by LNG, fertilizer supply risks from Iran conflict.
• Turnberry trade deal fast-tracked, but faces tariff and legislative hurdles.
• EU pushes competitiveness via ETS relaxation, nuclear, and battery storage incentives.
• Transatlantic tensions reshape alliance, urging coordinated economic and security strategies.

Summary

The Atlantic Council’s Europe Center convened a panel of senior officials to assess the state of transatlantic relations as 2026 enters its final quarter. Recent flashpoints—including U.S. saber‑rattling over Greenland, the Supreme Court’s rebuff of Trump’s AIPA tariffs, and coordinated U.S.–Israeli actions against Iran—have forced Europe to recalibrate its diplomatic and economic posture toward Washington.

Panelists highlighted Europe’s pragmatic response to the Strait of Hormuz crisis, emphasizing diplomatic offers and the deployment of de‑mining and escort vessels rather than direct military engagement. At the same time, the EU grapples with heightened energy exposure: 8‑10% of its LNG imports flow through the strait, alongside critical fertilizer shipments, while gas storage remains low after a harsh winter.

Notable remarks underscored the urgency of policy action. Ambassador Daniel Freried stressed that European nations are positioning themselves to assist once a political framework emerges, while Dr. Fran Burwell detailed the Turnberry trade deal’s record‑speed legislative push and the lingering tariff disputes. Dr. Tyson Burker pointed to the European Council’s competitiveness agenda—relaxing ETS rules, fast‑tracking nuclear small‑modular reactors, and accelerating battery‑storage permits—as a strategic response to energy volatility.

The discussion signals that transatlantic cooperation will increasingly hinge on coordinated economic resilience and security coordination. Europe’s move toward renewable and nuclear options, coupled with a renewed focus on trade normalization, aims to mitigate supply shocks and preserve competitiveness, while also redefining the alliance’s diplomatic calculus in a turbulent geopolitical landscape.

Original Description

On Monday, March 23 at 11:00am ET, the Atlantic Council’s Europe Center explores Europe’s evolving geopolitical ambitions and their implications for the transatlantic relationship in the first quarter of 2026.

2026 has been a tumultuous year for Europe. Russia’s war in Ukraine and the conflict in Iran continue to challenge Europe’s security and economic footing. Tensions in the transatlantic relationship over these issues and more, including trade relations and Greenland, have continued to test the partnership. These developments have intensified discussions about Europe’s ability to act as a capable geopolitical actor.

Following the meeting of the European Council on March 19-20, this event convenes leading experts to examine how Europe is navigating the current conflicts and geopolitical shifts, and what these efforts mean for the future of the transatlantic relationship.