How to de-risk from America
Financial Times • • business
Key Points:
- Many countries, including traditional US allies, are increasingly seeking to reduce their dependence on America due to concerns over the unpredictability of the Trump administration and its impact on global stability.
- This process of "US de-risking" is particularly pronounced among European and Asian allies, who are re-evaluating their economic and security ties amid America's retreat from the liberal international order.
- Economically, nations like Canada are diversifying exports away from the US towards China and India, while Europe and the UK are pursuing new trade partnerships partly spurred by US policies under Trump.
- Financially, the assault on Federal Reserve independence and rising US inflation risks weakening the dollar's dominance, prompting central banks to increase gold reserves and consider alternatives to US Treasury bonds.
