FAREWELL, AMERICA

One thing already seems certain: America’s role in the global economy will decline as trading with it (let alone trusting it) becomes more difficult

- Carl Bildt

Are we heading into an era when the United States simply matters less? This question may sound odd, considering that America remains the world’s leading military and technological power, reserve-currency issuer, and anchor of the global financial system.

But with the US having chosen to retreat from its global role, it will gradually lose much of the power and influence that it now takes for granted.

To be sure, America’s power and influence has already waned. For decades after World War II, the US could shape the global system to serve its own purposes; and during the brief “unipolar” moment that followed the collapse of the Soviet Union, its status was unrivaled. But other powers have since grown in stature and are pursuing global ambitions. While China is the most obvious example, Europe, too, is seeking the unity required to assert itself as a serious global player, and many middle powers want to raise their profiles as well.

This is the context in which President Donald Trump has hastened America’s retreat. While no one is surprised to see an “America First” administration ditching global responsibilities, the sheer pace of the change has been remarkable. Already, a growing void is opening up within the world order.

Clearly, trade is central to Trump’s thinking. Failing to understand that it can benefit all who engage in it, he sees only a zero-sum game that America has been losing. Never mind that this belief flies in the face of basic economics (and common sense); Trump simply cannot get over the fact that the US imports more goods than it exports.