Hugo Dixon
The rest of the West can no longer rely on the United States. The European Union, Japan, Britain, Canada and others need to reduce their dependency on Washington while not becoming reliant on China. That means weaning themselves off the dollar, boosting cooperation in trade and defence, and reaching out to emerging economies such as India.
As U.S. President Donald Trump swings his wrecking ball through the global trading system and bullies formerly staunch American allies, other developed countries will have to form a new club without the U.S. They can be stronger if they work together. Mark Carney, Canada’s prime minister, has suggested as much.
Trump will dislike any initiative that smacks of other countries joining forces against the United States. He has already warned, opens new tab Canada and the European Union not to coordinate their response to his chaotic tariff policy.
The president’s massive U-turn on trade last week has weakened his position on the global stage. But he remains a formidable force. So the rest of the West would be wise to avoid antagonising him unnecessarily.
DETHRONING THE DOLLAR
Trump is not just tearing up the world trading system. His administration is undermining faith in the dollar, which accounts for 58%, opens new tab of official reserves.
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