Trump’s Policies Accelerate Shift Away From Transatlantic Alliance, Raising Economic Risk
WASHINGTON – Donald Trump’s continued advocacy for policies challenging the foundations of the transatlantic relationship is accelerating a global reordering, prompting European nations to seek greater strategic autonomy and even traditionally staunch U.S. allies like Poland to reassess their alignment with Washington. This evolving dynamic, largely overlooked by markets, carries the potential for important economic disruption if capital flows begin to reflect a permanent divergence in currency regimes, regulatory frameworks, and trade access.
The shift isn’t merely rhetorical; it’s manifesting in concrete actions.France and Germany are actively pursuing a more integrated Notes from Poland. These developments suggest a broader trend of nations preparing for a world less anchored by customary American leadership.
Thus far, financial markets have largely treated Trump’s pronouncements and actions as political theater, absorbing volatility without fully acknowledging the underlying structural changes. Though, a sustained decoupling – especially in areas like trade, regulation, and monetary policy – could trigger a rapid reassessment of risk, perhaps leading to a financial shock more difficult to resolve than the 2008 crisis. The implications extend beyond economics, reshaping geopolitical alliances and challenging the post-World War II international order.