Though relations between Xanadu and the United States are never outright hostile, as both nations attempt to expand or preserve their influence they inevitably begin to compete over resources and alliances over time. However, the opening of Xanadu markets during your term have resulted in both states being economically intertwined to a high degree.
With a strange military equilibrium caused by Xanadu’s exceptional missile defense making nuclear weapons irrelevant, especially as this technology diffuses around the world, the regional trade blocs first cemented during your tenure become focal points of conflict. The Xanadu sphere of influence eventually coalesced into a large Pan-African trade bloc, culturally highly diverse but economically linked by Xanadu. Our trade deals cement the ties between North America and Europe that emerge as a second powerful economic bloc, and within several decades after your retirement an east asian trade bloc led by a powerful China emerges as well.
Military force, especially large scale conflict, is rendered mostly irrelevant by Xanadu technology. Though this technology revolutionizes nearly every sector of the global economy, the resources and markets of non-bloc states in South America and Central Asia become targets of competing economic blocs that seek to incorporate their markets. The world appears headed towards an international order of geoeconomic competition, no less cutthroat than the world of military conflict it left behind, but perhaps less deadly.