In today’s rapidly shifting geopolitical and economic landscape, the question of whether close alliances with the United States remain advantageous is increasingly pertinent. Post-World War II relationships between the U.S. and its allies in Europe and Asia were built on two pillars: security and economics. However, current realities—from trade wars to extraterritorial sanctions—are prompting nations to reassess the benefits versus the risks of such partnerships. This article examines the key drawbacks of alignment with the U.S., drawing on contemporary challenges and historical lessons to address the question: is the price of an alliance with America worth paying?
Historical Context: Security and Economic Cooperation
After World War II, the United States offered its allies a “security umbrella” (NATO) in exchange for certain concessions. European and Asian nations, such as Japan and South Korea, were able to reduce their own military expenditures by relying on American military power, particularly during the Cold War. However, this protection came at a cost: allies granted the U.S. rights to establish military bases and joined American-led military campaigns in Korea, Vietnam, Iraq, and Afghanistan. These operations often resulted in significant financial and human losses. For instance, Australia lost more than 500 service members in the Vietnam War, while the United Kingdom lost approximately 180 soldiers in Iraq.
Economic cooperation was also mutually beneficial but unequal. The U.S. became the largest export market for many countries, while American companies gained privileged access to allied markets, particularly in agriculture and industry. Countries with developing economies, such as China and Southeast Asian nations, provided cheap labor and less stringent environmental standards, enabling American corporations to optimize costs through outsourcing. In return, allies accumulated trade surpluses, which were often reinvested in American assets, financing the U.S. budget deficit. By 2023, foreign governments held approximately 33% of U.S. public debt, underscoring the scale of these financial ties.
Modern challenges: tariffs, sanctions and loss of trust
Today, the dynamics of these relationships have shifted. The U.S. administration, particularly under President Donald Trump, intensified protectionist policies, imposing tariffs on imports from allied countries such as Canada, the EU, and Japan. These measures, aimed at protecting the American economy, prompted retaliatory tariffs, increasing costs for consumers and producers on both sides. For example, in 2018, the introduction of tariffs on steel and aluminum from the EU triggered countermeasures targeting American goods like whiskey and Harley-Davidson motorcycles, harming U.S. exporters.
An even more significant issue is the extraterritorial sanctions imposed by the U.S., which affect companies and countries conducting business with nations such as China, Russia, or Iran. The use of the U.S. dollar in international transactions grants American authorities jurisdiction to impose fines or seize assets. For instance, in 2014, the French bank BNP Paribas was fined $8.9 billion for violating sanctions against Sudan, Cuba, and Iran. This creates a dilemma for allies: continue trading with China, Asia’s largest economy, or comply with U.S. demands, risking economic losses.
Military Dependence: Myths and Reality
The value of the American security umbrella is also increasingly questioned. Since World War II, the United States has not achieved significant military victories, with the exceptions of operations in Panama and Grenada. Wars in Korea, Vietnam, Iraq, and Afghanistan have demonstrated that America’s high-tech military strategy often falters in wars of attrition against less-equipped adversaries. Moreover, there is no guarantee that the U.S. will honor its commitments. For instance, the review of the AUKUS agreement, which includes the supply of nuclear submarines to Australia, has raised doubts about the reliability of American promises.
A historical example is Charles de Gaulle’s decision to develop France’s independent nuclear arsenal in the 1960s, driven by the belief that national security cannot depend on other nations. Today, countries like Japan or Germany may question whether America would risk its own cities to defend Tokyo or Berlin.
Economic Hegemony: The Exaggerated Role of the United States
The economic influence of the United States is also less substantial than commonly perceived. In 2023, trade accounted for only 25% of U.S. GDP, significantly below the global average of 59%. The U.S. consumes 10–18% of global goods and services, which is significant but not irreplaceable. The rise of economies like China, India, and ASEAN countries, alongside reflationary measures in Europe, is creating alternative markets. For instance, in 2023, China surpassed the U.S. as the EU’s largest trading partner
The proposal by Trump’s Council of Economic Advisers chair, Stephen Miran, to reform the international monetary system, including forcibly converting foreign assets in the U.S. into long-term bonds, threatens the financial stability of allies. This could be perceived as a de facto default, undermining confidence in the dollar as a reserve currency.
Compromises with sovereignty
Alignment with the United States often demands sacrifices in national sovereignty. For instance, allies may be compelled to grant American tech giants like Google and Meta access to their markets, disregarding local privacy laws. In 2023, the EU fined Meta €1.2 billion for violating GDPR, but U.S. pressure to weaken such regulations is intensifying.
Additionally, countries may be coerced into transferring strategic assets. Ukraine, for example, granted American companies access to its mineral resources in exchange for military aid. Taiwan and South Korea could face demands to relinquish control over their semiconductor industries, which account for 60% of global chip production.
Alternatives: Pragmatism and a Multipolar World
Instead of blindly following the United States, countries can adopt Lord Palmerston’s principle: nations have no permanent allies, only permanent interests. This entails developing independent defense capabilities, as France has done, and fostering networks of mutually beneficial trade relationships. For instance, the Regional Comprehensive Economic Partnership (RCEP), uniting 15 Asian countries, accounts for 30% of global GDP and demonstrates the potential of regional alliances.
Repatriating capital and investing in stable economies with reliable property rights can also reduce dependence on the U.S. For example, in 2024, China increased its infrastructure investments in Africa by 20% compared to the previous year, creating alternative financial flows.
Risky Friendship
As Henry Kissinger noted, being America’s enemy is dangerous, but being its friend can be fatal. The price of friendship with the United States—from loss of sovereignty to economic risks—is becoming increasingly high. In a world moving toward multipolarity, countries should focus on their own interests, developing independence, and diversifying partnerships. America may remain an important player, but its role as an indispensable ally is no longer so clear.
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