Manage Transatlantic Interdependence

Despite political calls to 'divorce' transatlantic economic links, the U.S. and Europe remain the planet’s most integrated economic bloc (roughly $1.6 trillion in annual trade and several trillion in cross‑border assets). Rather than pursue unilateral tariffs or engineer a pivot toward China, policy should rebuild sector-by-sector coordination to share exposure, target Chinese distortions, and stabilize supply chains and defense contribution tradeoffs. — Shifts the policy question from decoupling versus pivoting to practical coordination on where to de‑risk, how to share defense costs, and how tariffs or industrial policy affect alliance cohesion.