Exhaust American power restraining EU (3,2)
I believe the answer is:
use up
'exhaust' is the definition.
(synonyms)
'american power restraining eu' is the wordplay.
'american' becomes 'US' (United States).
'power' becomes 'p' (symbol in physics).
'restraining' is an insertion indicator.
'us'+'p'='usp'
'usp' placed around 'eu' is 'USE UP'.
(Other definitions for use up that I've seen before include "Exhaust (resources)" , "Consume (stocks)" , "Completely consume" , "Expend" , "Entirely consume" .)