Germany’s core strategic interests are at variance with that of the United States. The alliance between the two major transatlantic powers is under severe stress. The war in Ukraine has added an undue burden on the German economy, which is likely to lead to inflation, recession and social unrest. Germany, an emerging hard power, does not intend to let inflation, recession and social unrest derail it from the path of pursuing its foreign policy objectives. In the coming decades, Germany is not likely to sacrifice its economic interests at the altar of liberal international order and this is likely to pose a bigger challenge to German–American ties in the long run.