A US State Department report to Congress on US policy in the Western Balkans, published last week, opens with a stark declaration: “The US-led nation-building era has passed.” Washington’s policy in the region, it continues, “is not about rescue or reconstruction, but stability and mutually beneficial partnerships.”
The report is a clear articulation of a shift in US engagement in the Western Balkans that has been underway for years, but that the Trump administration has pushed further and reframed. It’s a policy of engagement that is less interested in managing the region’s political disputes, prioritizes US commercial interests, and sets an expectation that European allies and regional actors alike take more responsibility for their own neighborhood.
The end of nation-building
The report identifies stability as the primary pillar of US policy toward the Western Balkans, but it frames it on different terms than earlier administrations.
In the years immediately following the Yugoslav wars, the US was directly and heavily engaged in the region, leading and supporting NATO-led peacekeeping deployments, brokering the Dayton Peace Agreement, and investing heavily in reconstruction, institution-building, and postwar political stabilization.
That role evolved over the following decades, as the US military presence was gradually drawn down and Washington’s policy shifted toward diplomacy, conflict prevention, and support for Euro-Atlantic integration, with the expectation that European institutions would assume a greater role in shaping the region’s future and managing its long-term stability.
The Biden administration largely maintained that framework, emphasizing coordination with European allies, support for democratic institutions and broader state-building efforts, and the integration of the Western Balkans into Euro-Atlantic structures.
The Trump administration is making a marked departure from this model. Rather than positioning Washington as a leading external guarantor of regional stability, the administration has emphasized that local actors and European allies should assume greater responsibility for regional security and political stability.
Deputy Secretary of State Christopher Landau articulated this position during a commemoration of the 30th anniversary of the Dayton Peace Accords in 2025. He framed the Trump administration’s approach as a departure from open-ended intervention and externally imposed political projects, instead stressing a more restrained role for the United States focused on pragmatism and working with local actors on achievable compromises.
“We in the Trump administration are willing to provide our good offices to improve conditions,” he said, “but only if our involvement is wanted and warranted.” Landau acknowledged that the approach marked a shift from how American officials had traditionally conducted foreign policy.
The State Department report echoes that sentiment, stating that the United States intends to maintain positive relationships with all regional actors while encouraging disputes to be addressed by “empowering local actors to resolve their own challenges, rather than perpetuating an overreliance on international intervention or supervision.”
On Bosnia and Herzegovina, the report says Washington will encourage political actors to avoid destabilizing actions that could undermine shared economic interests. On Serbia and Kosovo, it encourages both sides to make progress toward a negotiated agreement. Security cooperation, including joint exercises and advisory programs, will continue, framed around burden-sharing with European partners and locally driven solutions.
Commerce as strategy
If the stability pillar reflects where the United States is stepping back, the economic pillar outlined in the report shows areas where it plans to increase its engagement.
The report is explicit about Washington’s commercial interests in the Western Balkans, describing one of its objectives as “competing for US commercial interests in a region that presents economic opportunities.” The region’s position along major transport corridors, its natural resources, growing technology sector, and skilled workforce are all highlighted as strategic assets.
Improving the business environment, expanding trade and market access, and strengthening regional infrastructure are presented as key objectives. This includes reducing barriers for US companies, advancing commercial deals, and promoting trade agreements and investment frameworks that benefit both US firms and regional economies.
On the energy front, the United States similarly seeks to expand private-sector participation in projects such as the Southern Interconnection pipeline linking Croatia and Bosnia and Herzegovina and a proposed Serbia–North Macedonia gas interconnector, among other projects. US engagement in these initiatives is framed as advancing the administration’s goal of reducing dependence on Russia while also creating economic opportunities for American firms.
These priorities are already visible in ongoing projects and diplomatic initiatives. American construction firm Bechtel, in response to the US government’s desire to engage in economic development and European integration in the Western Balkans, is contracted to build sections of regional motorways part of strategic transport corridors. This includes sections of Corridor VIII, which the report identifies as a key transport route of continued US commercial interest. The contract for the Southern Interconnection pipeline project, meanwhile, was awarded to a US company following bilateral talks between Washington and Sarajevo.
In parallel, the Department of Energy convened representatives from 12 countries in February — including Croatia, Serbia, and Bosnia and Herzegovina — to sign a joint statement on expanded energy cooperation and reduced dependence on Russian gas. The Western Balkans Prosperity Act, passed as part of the 2026 National Defense Authorization Act, further codifies US priorities to expand trade and investment in the region, alongside energy diversification away from Russia.
