Trump tariffs, troop pullback deepen transatlantic rift

US President Donald Trump's decision to raise tariffs on European cars and trucks to 25% and withdraw about 5,000 US troops from Germany has sharpened a transatlantic divide already fueled by rifts over the Iran war, raising fresh doubts about the durability of the Western alliance.

Both announcements landed on Monday as relations between Washington and several European capitals were deteriorating over the US-Israeli campaign against Iran and Europe's reluctance to become involved. German Chancellor Friedrich Merz had recently criticized Washington's Iran strategy, saying the US was being "humiliated" by Tehran, remarks that drew a sharp response from Trump.

The immediate stakes are both economic and strategic. Europe's auto sector now faces the prospect of higher costs in its largest export market, while NATO allies are confronting the reality of a smaller American military footprint in Germany, long the logistical backbone of US operations in Europe and the Middle East. EU officials have already warned of possible retaliation against US goods, while NATO diplomats are seeking clarification from Washington on whether deeper troop reductions could follow.

Germany is particularly exposed to both measures. Its auto industry remains one of the country's largest employers and a pillar of its export-driven economy, already weakened by energy shocks tied to instability around the Strait of Hormuz. Higher US tariffs threaten companies that rely heavily on American consumers, although vehicles assembled by European brands inside the United States are expected to avoid the new duties.

For his part, Trump framed the tariff hike as punishment for what he called European non-compliance with the Turnberry Agreement, a framework negotiated last year that had set tariffs on European autos at roughly 15% in exchange for broader trade concessions.

Trump's latest tariffs also underscore how he has adapted his trade strategy after the Supreme Court earlier this year struck down his broader IEEPA-based tariff regime, which included "reciprocal" tariffs on countries around the world. The duties on European autos were instead imposed under Section 232 of the Trade Expansion Act, a national security provision Trump has repeatedly used to justify protectionist measures aimed at reviving US manufacturing.

The decision revived memories of Trump's first-term trade clashes with Europe over steel, aluminum and automobiles, disputes that disrupted supply chains and triggered retaliatory tariffs from Brussels. In his second term, however, Trump has tied trade pressure more directly to security disputes, particularly as the Iran war intensified Washington's demands for greater allied support.

At the same time, the troop withdrawal added a security dimension to the dispute, reinforcing Trump's willingness to apply pressure across multiple fronts. The move carries symbolic weight beyond the numbers involved, as Germany hosts roughly 36,000 American troops – the largest US military presence in Europe – along with major facilities including Ramstein Air Base and the headquarters of US European Command. While the Pentagon described the drawdown as part of a broader force posture review, Trump suggested larger reductions may still come and has also threatened cuts in Italy and Spain.

European officials publicly downplayed the announcement while acknowledging the strategic message behind it. German Defense Minister Boris Pistorius said Europe needed to assume greater responsibility for its own security, echoing broader calls across the continent for higher defense spending and greater strategic autonomy.

NATO allies nonetheless fear that a visible reduction in US commitment could embolden Russia, now in the fifth year of its conflict with Ukraine, at a time when the alliance is already strained by the Iran conflict and mounting pressure on defense resources.

The overlap between trade and security policy reflects a familiar Trump doctrine: allies seen as insufficiently supportive economically or militarily can face pressure across multiple fronts. This trend is likely to continue as divergences between the US and its European allies widen across a growing range of issues, reinforcing European perceptions that Washington is drifting away from the shared values that long underpinned the alliance while deepening Trump's view that America's transatlantic partners are becoming increasingly unreliable.

In Washington, however, concerns are emerging within Trump's own party. Senior Republican lawmakers warned that reducing forces in Europe before NATO capabilities are strengthened could weaken deterrence and send the wrong signal to Moscow. Their criticism highlights a broader debate in the US over whether Trump's "America First" strategy strengthens its bargaining power or gradually erodes the alliances that have underpinned American influence for decades.