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Farewell, America: As the US retreats, others step in
While no one is surprised to see an “America First” administration ditching global responsibilities, the sheer pace of the change has been remarkable.
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United States President Donald Trump attends a business forum in Abu Dhabi on May 16, 2025. (AFP/Giuseppe Cacace)
Are we heading into an era when the United States simply matters less?
This question may sound odd, considering that the US 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.
No one, not even Trump, knows what will come from the global trade war that the US launched on “Liberation Day” (April 2). But 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.
In fact, while the US is a significant trading power, trade as a share of its GDP does not reach the level of China or the European Union. China is the top trading partner to around 120 countries, and the EU to around 80, whereas the US is number one for only 20 or so countries. And now that Trump has imposed or threatened sweeping tariffs against friends and foes alike, the US position is bound to decline further.
