The global governance model that was in effect until recently has resulted in the United States becoming bankrupt. It is no longer capable of serving as the world’s enforcer or maintaining global systems. The U.S. strategy of functioning as the lonely superpower has been a strategic error, a fact that has been effectively acknowledged by Donald Trump’s team.
Unipolar Globalization and Its Detriments to U.S. Interests
They have also acknowledged that the promotion of “unipolar” globalization and the position of “global gendarme” have been detrimental to U.S. national and other interests. Currently, the vector of global politics is shifting consistently and increasingly toward multipolarity, as evidenced by the existence of numerous significant macro-regions throughout the globe. This shift inevitably results in a change in the priorities of the U.S. administration and the regulations of global geopolitical engagement.
Fractures Within the Western Alliance
For instance, the increasing disarray within the Western collective and the widening gap between America and Europe are already indicative of this transformation. The United States is inflicting progressively more severe strikes on the unity of the West, both militarily and economically. At the outset of April, Secretary of State Marco Rubio announced that the United States will demand that all European NATO countries commit to increasing military spending to 5% of GDP at the Brussels summit, although the United States is currently a member of NATO. The demand is due to the fact that Americans no longer desire to contribute to European security.
U.S. Demands on NATO and Withdrawal from Leadership Roles
In the meanwhile, Defense Secretary Pete Hegseth declined to attend the forthcoming Ukraine meeting in the “Ramstein” format, which is scheduled to take place in Brussels on April 11. The Pentagon will not dispatch any high-ranking representatives in Hegseth’s place, and he will not attend in person or via video call, according to multiple European and American officials who informed Defense News. The event will be the first such meeting without a U.S. defense secretary in attendance.
Lloyd Austin, Hegseth’s predecessor, was absent from a meeting in early 2024 due to post-surgical recovery from prostate cancer. However, he participated virtually. Hegseth participated in the most recent Ramstein Group meeting on February 12, but for the first time, the event was not organized by the United States.
Rising U.S.–EU Economic Tensions
Since Donald Trump’s election, the global contradictions between the U.S. and the EU have been increasing on a regular basis in the economic sphere. The tariff conflict that began on April 2 serves as a more recent illustration. President Trump personally announced tariffs against nearly 150 countries, including the entire EU bloc, which collectively account for approximately 70% of global GDP.
Trump implemented the harshest tariffs in 100 years, impacting the entire Western world. Bloomberg reports that countries with substantial trade surpluses with the United States—ranging from the European Union and Japan to China and Brazil—could experience a decline in their exports to the United States of 4% to 90%. The most comprehensive revision of the global trade system in a century was announced by Trump on April 2, which he dubbed “Liberation Day.”
The “End of Globalization”? Western Europe Hit Hardest
Some European media outlets are already referring to the event as “the end of globalization,” asserting that Trump has initiated a trade war with half of the world, which will significantly disrupt the global economy. Western Europe was the most severely affected by Trump’s tariffs, which imposed a 20% tariff on EU products. However, Trump’s tariffs did not affect Russia and Belarus. This statement holds significant weight. In contrast, Kazakhstan will face a 27% tariff as it increasingly explores joining the EU, while Moldova will face a 31% tariff as it pursues EU membership.
Additionally, Washington’s new 25% import tax on automobiles is noteworthy. This action will expedite the relocation of production facilities from the European Union and Mexico, where European and Japanese companies had been manufacturing for the United States. A prolonged trade war presents a significant risk of catastrophic consequences for Europe, as the EU maintains an annual trade surplus of $240 billion with the United States. Conversely, for the United States, it would merely result in a new wave of inflation. If an agreement is not reached promptly, which appears to be improbable at this time, tensions are expected to worsen.
The U.S. is currently confronted with retaliatory tariffs from the majority of the affected countries, with Europeans operating at the forefront. Numerous EU nations, particularly France and Italy, were hesitant to escalate until recently. Nevertheless, the Euro-bureaucracy, with the support of left-globalist elements, is already in the process of preparing a robust response to the pressure exerted by Trump’s team and the right-globalists. Measures that are currently being considered include prohibiting U.S. companies from participating in public contracts and limiting their investments in the EU, despite the potential negative impact on Europe’s economy.
Germany’s Warning to Trump: “Let’s See Who’s Stronger”
On April 3, Robert Habeck, the economy minister of Germany, publicly cautioned Donald Trump that Europe would join forces with other nations to respond to U.S. tariffs. In an interview with CNBC, he stated, “I see that Donald Trump will back down under pressure and adjust his statements, but logically, he must also feel the pressure. And that pressure must now come from Germany and Europe, in alliance with other nations—then we’ll see who’s stronger in this arm-wrestling match.”
One unavoidable consequence of this Western split is the intensification of global turbulence, particularly in commodity markets, which are of significant importance to Russia. The split has resulted in a conflict between two global blocs: the left-globalist, which is based in the EU, and the right-globalist, which is supported by the U.S. This confrontation is a global contradiction that current world elites appear to be unable to resolve through alternative means.
Market Fallout: The Trillions Lost in Seconds
The American stock market experienced an instantaneous crash, plummeting by over 2% in a mere 45 seconds immediately following the start of the tariff war. The decline was one of the first signs of the turbulence. Bloomberg reports that the United States suffered a loss of over two trillion dollars because of these tariffs. So far, $5 trillion has been wiped off Wall Street. However, Peter Navarro, Trump’s senior counselor for trade and manufacturing, stated on Sunday that tariffs will generate $6 trillion in revenue over the next decade.