Luxembourg-US Relations: A Historic Partnership

Luxembourg and the United States boast a longstanding relationship built on deep historical ties, economic cooperation and a commitment to shared values such as democracy, freedom and human rights; while the transatlantic alliance has evolved over the decades, its foundations remain strong, shaped by historical events such as the two World Wars and reinforced through diplomatic, economic and cultural exchanges.

In recent months, Luxembourg-US and wider EU-US relations have been in the spotlight, not only due to shifting global trade dynamics and geopolitical tensions, but also in the context of the 80th anniversary of the Battle of the Bulge. Luxembourg paid tribute to the sacrifices made by American soldiers in its WWII liberation, highlighting its enduring gratitude and the historical bonds between the two nations. At the same time, evolving trade relations, institutional partnerships and diplomacy continue to shape Luxembourg-US cooperation.

Historical Ties: Migration & World Wars

Whilst today there are generally more people moving to the Grand Duchy than departing (almost 27,000 arrivals compared to over 16,500 departures in 2023, according to STATEC), the country experienced waves of emigration in the past. Before the steel industry took off in the mid-19th century, Luxembourg was quite a poor and rural country. Overseas emigration became popular throughout the 19th century right up until WWI. Tens of thousands of Luxembourgers (estimated at 60-70,000) left their homes behind in pursuit of new opportunities, with many emigrating to the United States (notably in the Midwest). Among them was the renowned photographer and painter Edward Steichen (1879-1973), who moved to the US with his family in the early 1880s and later served as Director of the Department of Photography at the Museum of Modern Art (MoMA) in New York. Another example is the inventor and publisher Hugo Gernsback (1884-1967), who emigrated to the US in 1904 and played a significant role in the development of the science fiction genre.

Today, over 17,000 Luxembourgish nationals reside in the US (including those of Luxembourgish heritage who reclaimed the nationality), according to the National Registry of Physical Persons. Meanwhile, the number of US citizens residing in Luxembourg has remained stable over the past decade, totalling 2,159 as of January 2024 (STATEC).

Beyond migration, Luxembourg and the US share a wartime connection. US forces played a decisive role in liberating Luxembourg from German occupation in both WWI and WWII. The Battle of the Bulge, fought in the Ardennes, in the bitter winter cold, between December 1944 and January 1945, remains a dark chapter in the region’s history. The US Army lost an estimated 19,000 men, who sacrificed their lives in the name of freedom. The Luxembourg American Cemetery in Luxembourg-Hamm, which contains the graves of more than 5,000 US servicemen, including General George S. Patton (who died after WWII), stands as a testament to this shared past. Numerous memorials scattered across Luxembourg (not least in the northern Ardennes region) also reflect this. Recent commemorations marking the 80th anniversary of the Battle of the Bulge highlighted Luxembourg’s continued gratitude and commitment to the transatlantic relationship.

Economic & Trade Relations

Over the years, the US has become one of Luxembourg’s largest trading partners. According to Eurostat, the US accounted for 20.6% of EU exports of goods and 13.7% of imports in 2024. In that same period, Luxembourg’s imports of goods from the US amounted to €601 million, while exports reached €423 million. The Grand Duchy also has one of the highest shares of US-bound extra-EU imports at 31.4%.

In terms of services, US exports to Luxembourg include commercial aircraft and ICT equipment, as well as services and intellectual property, according to the US Department of State. Luxembourg, as a major financial centre, has attracted various US banks and asset management companies. The two nations also boast close collaboration on commercial space exploration.

Foreign direct investment (FDI) further solidifies these economic ties. In 2022 (latest figures found), US FDI in Luxembourg reached $605 billion, while Luxembourg’s investments in the US totalled almost $324 billion. US goods exports to Luxembourg amounted to $1.7 billion and imports stood at $0.7 billion in 2022; US services exports to Luxembourg reached $9.8 billion and imports from Luxembourg totalled $2.5 billion in 2022. Currently, the Schengen-headquartered PM-International is investing $11 million into a new production and distribution centre in Florida for its health foods range.

Luxembourg is also home to major US companies, such as Amazon (4,270 employees as of January 2024) and Goodyear Dunlop (3,440 employees), as well as others including Guardian Glass and DuPont; interestingly, the current International School of Luxembourg (ISL) started off in 1963 as the DuPont de Nemours Private School. More recently, Google announced the opening of its first Luxembourg office and a $50,000 investment in a Centre of Excellence at the University of Luxembourg’s SnT research centre, signalling optimism for future economic relations.

Diplomatic & Bilateral Cooperation

Luxembourg and the US established formal diplomatic relations in 1903. Both countries are founding members of the North Atlantic Treaty Organization (NATO), which was set up in 1949. While some tension has arisen over Luxembourg’s defence spending commitments, cooperation within NATO remains crucial - as the Luxembourg government has often pointed out. Luxembourg is also home to the NATO Support and Procurement Agency (NSPA), established in Capellen in 2012 (previously it was known as NAMSA); NATO's main life cycle management, acquisition and services provider counts more than 1,400 employees (2023 figure). Beyond NATO, Luxembourg and the US collaborate through various other international organisations, such as the United Nations (UN), the Organization for Security and Co-operation in Europe (OSCE) and the Organisation for Economic Co-operation and Development (OECD), among others.

In terms of bilateral representation/diplomatic missions, the US established an embassy in Luxembourg in 1922. Both the US Embassy and the ambassador’s residence have been located at the Dolibois House in Luxembourg-Limpertsberg since 1944, following the liberation of Luxembourg during WWII. The building is named after John E. Dolibois (1918-2014), a Luxembourger whose family emigrated to the US (in 1931) and who served as US Ambassador to Luxembourg from 1981 to 1985. The Differdange-based overseas campus of Miami University (in Ohio) is also named after him: Miami University John E. Dolibois European Center (MUDEC).

Thomas Barrett, former Mayor of Milwaukee, served as the US Ambassador to Luxembourg between 2022 and early 2025. Interestingly, Mr Barrett’s home state of Wisconsin has close historical ties with Luxembourg, as one of the areas where many Luxembourgish families settled in the 19th century. US businesswoman Stacey Feinberg has been named the next US Ambassador to Luxembourg. Luxembourg also has an embassy in the US, in Washington, DC, with a number of consulates in different US states. The current Luxembourg Ambassador to the US and Canada is Nicole Bintner-Bakshian.

Cultural, Social & Business Connections

Luxembourg and the US maintain strong business ties through organisations such as the American Chamber of Commerce in Luxembourg (AMCHAM), which represents about 120 US companies (as well as other international companies). The Luxembourg American Chamber of Commerce (LACC) in the US also fosters business and trade links. In addition, a number of groups including the American Women’s Club of Luxembourg (AWCL) in the Grand Duchy and the Luxembourg American Cultural Society (LACS) in the US strengthen cultural and social ties between the two countries. LACS, located in Belgium, Wisconsin, notably organises the “Luxembourg Fest of America” in August each year; highlights typically include a Träipen-eating contest (“Träipen” being a Luxembourg-style black pudding), a big street parade and the traditional “Hämmelsmarsch” (sheep march). Moreover, LACS helps Americans with Luxembourgish heritage apply for dual citizenship. The Luxembourg Brotherhood of America, founded in Chicago in 1887 as the “Luxembourg Bruderbund”), similarly helps keep US-Luxembourg historic ties alive, through cultural and social activities.

Recent Tensions & Future Outlook

Whilst the US remains an important ally for Luxembourg, the geopolitical situation paired with recent developments “across the pond” have put a strain on relations between the European Union (of which Luxembourg is a founding member) and the United States. This includes disagreement over free speech (US Vice President JD Vance's critical comments in Munich in February) and recently announced tariffs. NATO spending in particular has emerged as a sticking point - although the US has been urging certain members (not least Luxembourg) to increase defence spending already before Donald Trump returned to the White House on 20 January 2025. As former British Chancellor of the Exchequer and Foreign Secretary Philip Hammond said at a recent British Chamber (BCC) event in Luxembourg, Europe has long relied on the US as a benevolent ally, willing to help in terms of security and defence in return “for nothing”. Whilst one may not agree with everything he said, Lord Hammond had a point - the EU has been too reliant on the US for too long.

Faced with US policy shifts as well as the Russian threat (Ukraine), the EU has now pledged to raise €800 billion in new defence spending, as part of the “ReArm Europe Plan/Readiness 2030”. This includes €150 billion from EU-backed loans raised on the capital markets. US, British and Turkish defence firms are currently excluded from the fund unless those countries sign specific agreements with the EU.

Prior to this, Prime Minister Luc Frieden reiterated Luxembourg’s commitment to the transatlantic alliance while also advocating a more unified and self-reliant Europe. Following the White House clash in February 2025 (involving Donald Trump, JD Vance and Volodymyr Zelensky), Prime Minister Frieden emphasised Luxembourg’s support for Ukraine and acknowledged the need for a more "pro-Europe" security approach. Despite some concerns over the US’s shifting stance, he assured that “America and the American people remain our friends,” reaffirming Luxembourg’s dedication to maintaining strong ties.

As Luxembourg (and the EU) and the US navigate an evolving geopolitical landscape and policy shifts, the hope is that their partnership continues to be defined by shared values, economic interdependence and historical ties. While challenges such as trade disputes and NATO funding commitments persist, initiatives such as Google’s expansion and continued diplomatic engagement signal a positive trajectory.

With new leadership in the US and shifting global priorities, Luxembourg’s approach will likely focus on maintaining strong diplomatic and economic ties while advocating for a more self-reliant, united Europe in areas such as defence and security.