Tag Archive for: Donald Trump

The US is gone—Europe must replace it

Donald Trump and JD Vance’s verbal assault on Ukrainian President Volodymyr Zelensky in the Oval Office will mark 28 February 2025 as an infamous moment in US and world history. The United States is rapidly destroying its good name and alienating everyone except the world’s most brutal dictators. The damage to the US’s credibility and reputation will take decades to repair—and may be irreparable.

More broadly, with the end of the postwar US-centred international order, we are witnessing the collapse of any global authority. As rogue states seek to capitalise on the chaos, Europe must step up and assume the role once played by the US. That starts by fully supporting Ukraine in the face of Russian aggression.

Yes, Europe is not as powerful as the US militarily; but that does not mean it is weak. In fact, it holds all the cards that it needs. Its combined military forces are among the world’s strongest, most experienced and most innovative. The Oval Office quarrel—which Trump and Vance seemed all too eager to provoke—should be the final impetus for Europe to get its act together, after decades of complacency. It has everything it needs to stand on its own, to support Ukraine and to deter Russia.

Moreover, Trump’s shameful behaviour is pushing the US’s dearest ally, Britain, closer to Europe, helping to bridge the post-Brexit divide. It is galvanising the forces of democracy and compelling political elites to wake up. Europe may soon have a moderate two-party ruling coalition in Germany and a committed democratic one in Austria. After a terrible year, French President Emmanuel Macron’s star is rising again.

Europe has a half-billion people and a GDP comparable to the US. We may not be as innovative, but the gap is not as large as pundits would have you believe. If we forge a coalition with Japan, Taiwan and South Korea, we can close it soon—especially now that Trump, Vance and Elon Musk are destroying the pillars of US power with their own cultural revolution.

In addition to raising costs for US consumers with tariffs, the Trump administration is waging a war on immigrants—long a unique source of US strength. Europe should capitalise by welcoming the best and brightest—including those being hounded out of the US’s world-class federal agencies.

As for defence capabilities, Germany’s industrial base is sufficient to arm the continent, while France and Britain’s nuclear umbrella can replace the US’s. The five largest European countries and Britain all currently have responsible, predictable governments that make a mockery of those now in power in Washington.

Poland has an especially important role to play in what happens next. Economic trends are on our side. Our army is growing. We made the right arms purchases while there was still time. Not even Trump can find a bad word to say about us. All of Europe can see this. The French (slightly jealous) speak of le moment polonais. Poland’s current leaders are among the most experienced, respected and resolute statesmen to be found anywhere.

At the recent Munich Security Conference, I spoke with many US politicians—including those, such as Senator Lindsey Graham, who are bending the knee to Trump—and I did not see much self-confidence. Rather than saying what they really think, they debased themselves and toed the Dear Leader’s line. It was embarrassing to watch.

When the Trump administration’s Ukraine envoy, Keith Kellogg, was asked backstage whether ‘we still have an alliance’, he admitted that he himself doesn’t know. Power in Washington is now completely concentrated in Trump. There are no longer any ‘adults in the room’, only sycophantic parrots competing to amplify their foolish master the loudest.

The historian Timothy Snyder struck the right note in arguing that 2025 is not about what America thinks; it is about what Europe can do. The Trump policy (a generous term) can only be profitable in the short term; for now, no one will dare to go head-to-head with the US. In the long run, however, the dismantling of the US state, the pointless tariffs and the alienation of friends and allies will cause lasting damage.

This is the moment to stand behind Ukraine. The treatment that Zelensky received was an absolute disgrace, loudly cheered by Russia. And no, he would not have gotten a better result if he had let himself be pushed around. This US government has shown where its loyalties lie. The same thing happened with the critical minerals agreement that Trump’s advisers have been forcing on Ukraine. The first version amounted to mafia-style extortion and Zelensky rightly rejected it. When a follow-up deal came, it was much better.

I will not be surprised if Trump and Vance’s disgusting behaviour provokes a backlash from the US public. But Europeans cannot afford to wait. With Trump back in the White House, Americans will have their own very big problems to worry about. Europeans must take our future into our own hands.

Trump’s AI strategy puts the Indo-Pacific at a crossroads

The United States’ refusal to sign the recent AI Action Summit declaration should be seen as a strategic shift rather than a diplomatic snub to the rest of the world. AI is as much about innovation as it is about driving economic security and military power. Therefore, Washington’s decision reflects its intent to maintain an edge in AI development, free from global constraints.

For Indo-Pacific nations, this shift deepens their strategic dilemma. The region risks being caught between emerging doctrines—balancing between Europe, China and the US, between regulate and don’t regulate, between mitigating social harms and advancing military capabilities.

Meanwhile, China’s influence over AI rules and standards continues to grow. Beijing has embedded itself in global rule-setting bodies and the launch of DeepSeek, further demonstrates China’s ability to develop and scale competitive AI applications commercially.

If regional democracies want to avoid being absorbed into Beijing’s AI orbit, they must take US and Chinese interests at face value and take ownership of a governance model that is neither US-centric nor China-dominated.

The AI Action Summit, convened by French President Emmanuel Macron and Indian Prime Minister Narendra Modi on 10–11 February, was the latest in a series of leader-level AI summits. Britain and South Korea hosted AI safety summits in 2023 and 2024, expanding commitments towards responsible AI development.

For the Trump administration, the Paris summit was an early opportunity to lay out its vision for AI and technology governance. Vice President JD Vance did not mince words when he delivered four messages:

First, the US is not ready to share. The US is still an AI leader and the administration will ensure the US dominates the full technology development chain—from semiconductors to algorithm design, applications and compute power.

Second, halt the regulators. The US takes a pro-growth approach to AI policies; deregulation will give big tech, little tech, start-ups and students free reign with some of the most groundbreaking applications. Other states are welcome to join but shouldn’t be ‘handwringing’ about safety. Above all, other states should refrain from ‘tightening the screws on US tech companies’.

Third, don’t worry about disinformation and AI-enabled interference. ‘We can trust our people to think, to consume information, to develop their own ideas, and to debate with one another in the open marketplace of ideas’, Vance said.

And finally, AI is a jobs-creator not an employment-eraser.

Vance’s anti-regulation message of ‘free-for-all AI’ is quite the about-face in US tech policy, even compared to Trump’s first term. Some countries in the Indo-Pacific will see the US’s message as an opportunity for economic gains, but many others will be concerned about the potential disruptive effects on social cohesion and national security.

We should expect Beijing to capitalise on US messaging, doubling down on its narratives of Global South solidarity, respect for sovereignty and AI for the purpose of sustainable development, despite being known for embedding surveillance and state control into its governance model.

China has already laid the groundwork for future leadership in AI. ASPI’s Critical Technology Tracker shows that, between 2019 and 2023, Chinese institutions have produced 36.5 percent of the world’s high-impact AI research, more than double the US’s 15.4 percent. This is the result of sustained investment and strategic planning.

Also, as other ASPI research has shown, the development of AI and other persuasive technologies in China has already progressed substantially enough that it now offers Beijing tools to dictate the information space.

The Pentagon is convinced it needs AI to maintain a competitive edge against China. According to Commander of US Indo-Pacific Command Admiral Sam Paparo, without it, the US cannot keep pace with China’s expanding military capabilities. The Trump administration believes that regulation would curb the potential of US innovation, which is predominantly undertaken by the private sector, and put the US at a commercial and strategic disadvantage. In a deregulated environment, this means it must restrict competitors—particularly China—from accessing the AI supply chain, including advanced semiconductors and research collaborations.

With the US resisting regulation and China assertively setting rules—both in pursuit of their narrower self-interests—the Indo-Pacific nations stand at a crossroads. While China may have signed the AI Action Summit declaration, there’s no guarantee that Beijing will follow through on its commitments.

To avoid being pulled into either the current US or Chinese AI orbit, the technology-mature nations of the region—such as Japan, India, Australia, South Korea and Singapore—need to acknowledge that a one-size-fits-all global AI governance approach isn’t feasible, and they must work towards a regional AI compact. Such a compact should recognise the security and military dynamics of AI but respect democratic values, promote responsible innovation and adhere to consensual international collaboration.

If Indo-Pacific nations don’t take matters into their own hands now, they risk being passive adopters of AI governance models that don’t reflect their interests—further eroding their digital sovereignty and strategic autonomy.

US-Russia negotiations won’t bring peace to Ukraine

Will US President Donald Trump be able to forge a peace between Russia and Ukraine, or are we facing a repetition of the infamous Munich Agreement? When Britain and France forced Czechoslovakia to cede the Sudetenland to Nazi Germany in 1938, they believed that doing so would ensure long-term peace. But appeasing a revisionist aggressor had the opposite effect, setting the stage for another world war one year later.

If peace means settling all the issues that now divide Russia and Ukraine, the likelihood of achieving such an outcome is extremely slim. The origin of the war lies in Russian President Vladimir Putin’s determination to prevent Ukraine from becoming ‘anti-Russia’, namely by forcing it back under Kremlin control. A democratic, sovereign Ukraine that sought cooperation and integration with the West was incompatible with what Putin regards as his historic duty. He has long maintained that the collapse of the Soviet Union was a catastrophe, and that Ukraine is not, in fact, an independent nation-state.

This means that a true peace between Russia and Ukraine will not be possible until Putin has left the Kremlin, and a more realistic vision of Russia’s future has gained ascendancy there. Nothing of the kind appears imminent. But if peace is not possible in the near term, a halt to the fighting and the beginning of a political process to reduce tensions might still be achievable.

Trump’s promise to end the war in 24 hours obviously was never serious. He is now facing a challenge that will take months, not hours. Putin previously made clear that he will not accept a ceasefire that does not result in Russia’s territorial expansion and Ukraine’s political and military submission. He will now try to extract as much as possible from a direct meeting with Trump, and judging by past meetings between the two men, his maximalist approach could pay off. Recall Trump’s private meeting with Putin in Helsinki in 2018, when he declared that he believed the Russian leader over his own intelligence agencies.

But can Trump really deliver Ukraine to Putin?

In September 1938, Czechoslovakia did not have a choice about what happened to it. It wasn’t even at the table for the discussions in Munich, where Adolf Hitler persuaded French and British leaders to accept its dismemberment. Within six months, Hitler violated the agreement, and German tanks were rolling into Prague. Trump and Putin are equally adamant that Ukraine should not be at the table. Their intention seems to be to draft an agreement and then force Ukraine to accept its terms.

Putin will likely be very ambitious with his demands, because he knows that this is his big chance. In his own opening bid, Trump will probably seek a straightforward ceasefire, with political talks later. But Putin will want more. He will not only press his original demands but also ask for relief from Western sanctions. The risk, of course, is that he will overplay his hand, demanding more than even Trump believes he can deliver.

But even if Putin resists that temptation and the two men agree on territorial and political terms, it is far from certain that Trump can force Ukraine to accept them. In 1938, Czechoslovakia decided not to fight, because its military prospects were essentially hopeless. But Ukraine’s are not. The chances that it would simply swallow a blatantly unjust and unfair diktat are slim to none.

To be sure, there is war fatigue in Ukraine after years of attritional warfare and routine Russian strikes on civilians and critical infrastructure. But the Ukrainians also recognise what is at stake. In February 2022, almost everyone assumed that they would break under Russian pressure within the space of just days or weeks. But now, three years later, Russia controls only around 19 percent of Ukraine’s territory. Moreover, Ukraine itself has taken control of territory in Russia’s Kursk region.

While the stakes are existential for Ukraine, they are also very high for the rest of Europe. If a US president not only refuses to acknowledge a brazen act of aggression, but also forces the victim into submission, much of what NATO stands for risks going up in smoke. Would the United States still come to the defence of the Baltics or other vulnerable NATO members?

And the risks are not Europe’s alone. What would become of NATO’s security guarantees and alliances in Asia and elsewhere? If the US is unwilling to defend Ukraine, would it really defend Taiwan?

Critical days lie ahead. A new and powerful source of global instability—the US government—must now be reckoned with.

US cuts to science and technology could fast-track China’s tech dominance

Is the United States now trying to lose the technology race with China? It certainly seems to be.

The race is tight, and now the Trump administration is slashing funding for the three national institutions that have underpinned science and technology (S&T) and what advantage the US still has.

China is outpacing the US in the volume of high-impact research in 57 of the 64 critical technologies in ASPI’s Critical Technology Tracker. The US’s main remaining advantage is downstream in implementing technology, and even that’s at risk as China’s significant S&T investments pay off.

Now the US’s lead may disappear even faster following cuts to the National Institutes of Health (NIH), National Aeronautics and Space Agency (NASA) and National Science Foundation (NSF).

The NIH is the biggest public funder of biomedical research worldwide and impacts global health in ways often taken for granted. For example, it supported the foundational work that led to the Haemophilus influenzae type b vaccine which, by some estimates, prevented 1.2 million infant deaths between 2000 and 2015. NASA is a stalwart of space research and inadvertently has contributed to medical innovations as it has attended to the health of its astronauts, such as the ear thermometer. The NSF funds all non-medical scientific research (biology, quantum computing, artificial intelligence, space and advanced materials) in the US and manages major research facilities.

The NIH stands to lose $4 billion out of the $32 billion already allocated to US research grants in 2024. This $4 billion cut is not just 11.4 percent of the NIH’s research grants; it will also limit its ability to cover indirect costs associated with equipment, maintenance, safety and personnel—everything that keeps world-class research facilities ticking.

According to The New York Times, indirect costs make up 29 percent of grant funds on average. With only 85 out of 613 institutions having indirect costs below 15 percent, a decision to cap indirect costs at 15 percent will at least halve the funds for maintaining labs for most NIH grant recipients.

If you are a grand-slam-winning tennis champion, these indirect costs are akin to the payments for your team of coaches, strategists, medical entourage, all your equipment and access to training facilities. Without these, you won’t stay at number one. It’s the same in the critical technology race.

Typically, labs and other research facilities have state-of-the-art equipment, which have indirect costs commensurate with their level of sophistication. This means that high-level labs—where breakthroughs often happen—have more to lose when funding is cut for indirect costs.

The biggest losers in these cuts will be top US universities, medical schools and hospitals, many of which are among the top 10 institutions in the Tech Tracker for biotechnologies, including MD Anderson Cancer Center, Memorial Sloan Kettering and many teaching hospitals within the Harvard Medical School. The NIH not only provides research funding in the biomedical fields; it also has 27 biomedical research institutions. The NIH combined is currently ranked second for vaccines and medical countermeasures and eighth for genetic engineering in the Critical Technology Tracker, highlighting its global importance and competitiveness.

NIH-funded research has contributed to early detection and prevention of cancers, chemotherapy and immunotherapy. The NIH also helped develop vaccines for flu and RSV (Respiratory Syncytial Virus), as well as the mRNA Covid-19 vaccine. These are the very institutions that the US government will rely on to develop the future vaccines needed to protect Americans from the next global pandemic.

In addition, in early February, biomedical research was again in the firing line with termination letters sent to hundreds of employees at the Centers for Disease Control and Prevention, the Food and Drug Administration, and the NIH. More job cuts are expected to follow, further weakening the sector.

Around the same time, the NSF froze all grant review processes to comply with new directives to end all diversity, equity, and inclusion (DEI) programs. According to the Washington Post, NSF staff were tasked with scrutinising active research grants—preciously approved by peer review—with a list of keywords including ‘women’, ‘diverse’ and ‘institutional’ to reverse any grants remotely related to DEI initiatives.

On 18 February, the haemorrhage of US S&T talent continued with a 10 percent cut to the NSF workforce. Given the NSF’s annual budget of $9 billion, the effect of this cut will be felt across all technologies. The Computer Research Association, for example, predicts devastating consequences for scientific innovation and talent in AI technologies and high performance computing, as the NSF funds 80 percent of fundamental computing research at US institutions. The association credits foundational US technologies behind AI, cybersecurity and quantum technologies to NSF funding.

The Critical Technology Tracker ranks the US first in quantum computing, with seven of the top 10 institutions based in the US. However, quantum technologies are priority areas for China, which unveiled its most advanced quantum computer, a 504-Qubit Superconductor, in December 2024. In 2022, the NSF’s Directorate for Technology, Innovation and Partnerships was set up to accelerate the implementation of NSF-funded discoveries from research to new industries, especially in technologies where the US faced the greatest competition. According to Reuters, the directorate lost 20 percent of its staff last week.

Similarly, NASA, currently ranked first in space launch systems research in the Tech Tracker, may face a 10 percent cut to its specialised workforce. These massive cuts have been put on hold, but if they resume, the loss of talent would be a blow to an important component of the technological race, especially with a worldwide shortage of tech specialists. Historically, US space and satellite companies have benefited from NASA’s decades-long public investments in research and development.

The Economist reported that the scrutiny of DEI programs extended to keywords related to climate change. The National Oceanic and Atmospheric Administration (NOAA) and NASA are therefore expecting major job cuts for their work in climate science and extreme weather patterns. The NOAA plays an important role in weather prediction. Its research on space and sensors is visible in the Tech Tracker across the areas of small satellites, gravitational sensors, and sonar and acoustic sensors.

While the US is cutting its funding, China continues its systematic, long-term investment in critical technologies. Synthetic biology is a sector in which China has the largest lead in the Tech Tracker. Over the past 5 years, China has published 57.7 percent of high-impact research in the field, while the US has produced just 13.1 percent.

Synthetic biology is the design and building of new biological systems. It has applications in many areas, such as agriculture and medicine, which directly affect food security and health. Like quantum computing, synthetic biology is an emerging technology where scientific innovation and intellectual property ownership can determine future industry dominance. Since 2006, China has prioritised synthetic biology and built a tech ecosystem around this emerging technology, comprising research institutes and industry.

As Drew Endy, a synthetic biologist from Stanford University, pointed out, the research infrastructure that China has built to support its all-of-nation approach to emerging biotechnology is now the envy of the world. The contrast between China’s investment strategy and the cuts imposed on the NIH could not be starker.

If the US doesn’t want to lose the S&T race with China, it must review its funding cuts. Reducing the funding envelope to grants organisations that oversee scientific grants, such as the NIH and NSF, will stifle the scientific innovations and breakthroughs that have been central to the rise of the US as a technology superpower.

Countries that have long relied on US technological research may need to step up spending on scientific research, or they, too, will risk being left behind.

ASPI USA roundtable: Trying to understand US economic statecraft

Governments are outraged, industry leaders are keeping a low profile, and economists and analysts are confused as they work to understand how the Trump administration’s approach can make the United States simultaneously safer, stronger and more prosperous.

In its first month, the Trump administration has shaken up the world trading system as it uses tariffs to try to promote US investment, productivity, industrial and technological advantage; defend US economic and national security; and help US workers.

An ASPI USA discussion with Claire Chu, Aaron Glasserman, Kimberly Donovan, Phil Rogers and William Alan Reinsch this month focused on what this approach means for US-China relations. This is the first in ASPI USA’s series of Chatham House roundtables to consider the Trump administration’s approach to geoeconomics.

The administration has imposed a 10 percent general tariff on Chinese imports, adding to economic measures established under the previous Trump and Biden administrations.

It has threatened to impose 25 percent tariffs on aluminium and steel not made in North America, reciprocal tariffs on all countries, 25 percent tariffs on automobile imports, and tariffs of at least 25 percent on pharmaceuticals and semiconductors. The US will also place 25 percent tariffs on imports from Mexico and Canada, unless these countries can further appease Trump. This is all before considering retaliatory tariffs levied on the US.

If a country adds a tariff to protect an industry, it does so by making foreign goods more expensive and domestic goods relatively more attractive. If the protected local companies then enjoy a larger market, they may expand their workforces.

But tariffs could also lead to job losses in non-protected industries. When companies pay more for imported inputs, they may pass on the higher cost to consumers. They may shrink their workforces, too. Costs would rise for US imports with no domestic alternative, affecting businesses downstream. For example, placing a tariff on coffee would increase prices for cafes. This might then affect bakeries that supply the cafes, as some consumers decide not to buy coffee.

The administration wants businesses to invest in domestic manufacturing, but this will take time. Tariffs and export controls, together with incentives, have led to reduced US investment into China, with some returning to the US. However, Donald Trump has questioned the value of mechanisms incentivising business to relocate. He suggested he might abolish the CHIPS and Science Act, a law that provides funds and incentives for semiconductor research and production in the US. He has also paused disbursement of grants under the Inflation Reduction Act, which seeks to do the same with renewable energy.

Broad tariffs increase production costs, which in turn inflate consumer prices. They also undermine US export competitiveness by increasing production costs and strengthening the dollar, leading to inflation and fewer jobs in the short to medium term.

The US must also consider how applying tariffs on allies and partners will affect its reputation. Imposing tariffs on any country the US perceives as having an unfair trade deficit, including when this is for a single sector within a broader trade surplus (for example, aluminium from Australia), signals a shift toward purely transactional economic relationships.

An apparent US disregard for decades of strategic and security cooperation will erode trust in US leadership, particularly among allies. This will reduce its ability to rally international partners for broader strategic objectives.

The proposed tariffs might also affect the US’s ability to counter China in the Indo-Pacific, particularly regarding Taiwan. Tariffs on Taiwanese goods, targeting its world-leading semiconductor industry, could impact Taipei’s calculus about whether its alignment with the US is in its best interest.

US tariffs could also affect Taiwanese public opinion, influencing voters to reconsider the viability of self-determination and strategic alignment with the US. This would be a gift to China as it works to lure Taiwan to unite with it.

The loss of Taiwan would undermine US national security; isolate key US allies and trade partners; make the 80 percent of global trade that passes by Taiwan and the South China Sea vulnerable to Chinese manipulation; and reduce US commercial access to 60 percent of global GDP.

Further, the Trump administration’s use of economic measures to elicit political outcomes—such as against Mexico to get action on the southern border or Columbia on illegal migrants—undermines its ability to call China out when it does the same.

Campaigning for election, Trump and his supporters boiled his trade proposals down to creating jobs and lowering prices, which would make the country safer, stronger and more prosperous. If the above principles of economics stand, then we must ask why the administration is using tariffs in contradictory ways.

At the roundtable, some experts pointed to Trump’s long-held view that allies and adversaries had taken advantage of the US for decades on trade and security. Others noted that with the national debt at more than US$36 trillion and still climbing, Republicans were willing to back Trump’s deal-making skills to lift revenue and get more favourable trade and political outcomes. While Elon Musk’s effect on trade policy was unclear, maybe the tariff on China being set at 10 percent instead of the foreshadowed 60 percent was because of his investment in the country.

At this stage, it is hard to see a strategy behind the tactics being employed.

A Westless world

Each February, members of the transatlantic strategic community head to Munich to discuss the state of international security, making the Munich Security Conference a not-to-be-missed event on the foreign-policy calendar.

This was true even during US President Donald Trump’s first administration, when it seemed as though very little was still binding the West together. After watching the debates at the 2019 conference, when key figures talked past each other and failed to find common ground, I coined the term ‘westlessness’ to describe the new state of play. Not only was the rest of the world becoming less Western, but so too were many Western societies.

Eager to reverse the tide, those attending the Munich conferences in recent years took great pains to signal Western unity and determination, as if to suggest that westlessness had been just a passing phenomenon. Joe Biden’s election to the US presidency led Europeans to believe that the United States was back, and Russian President Vladimir Putin’s full-scale invasion of Ukraine a year later gave the West a new sense of shared purpose. But by the time that the 2024 gathering arrived, Western self-doubt had returned; and at this year’s conference, westlessness returned with a vengeance.

Following the news of Trump’s call with Putin and Secretary of Defense Pete Hegseth’s comments acceding to Russian demands before negotiations had even begun, the audience in Munich anxiously looked to Vice President JD Vance for clarity on the new administration’s transatlantic security strategy. But the speech that Vance gave did not seem to be about security at all. Instead, he used his time to scold Europeans for their alleged departure from shared values, condemning Europeans’ interpretation of freedom of speech even as his own administration uses lawsuits and other threats to crack down on the US’s free press.

With Germany’s federal elections just a week away, Vance then condemned European governments’ unwillingness to rein in ‘out-of-control migration’ and lambasted German liberal-democratic parties for refusing to work with the far right. ‘I’ve heard a lot about what you need to defend yourselves from’, he noted. ‘But what has seemed a little bit less clear to me and certainly, I think, to many of the citizens of Europe, is what exactly it is that you’re defending yourselves for.’

To those in attendance, these remarks looked like a direct attack on the values at the heart of the North Atlantic alliance. Vance offered up the illiberal-nationalist alternative to the liberal-internationalist order that has underpinned intra-Western relations—and debates at the Munich Security Conference—for many decades.

The Europeans in Munich duly pushed back. Shocked to find themselves being lectured to by a government that is waging war on the rule of law and freedom of the press at home, they rejected Vance’s attempt to interfere in their domestic political affairs. ‘We do not only know against whom we are defending our country, but also for what’, German Defence Minister Boris Pistorius replied. ‘For democracy, for freedom of expression, for the rule of law, and for the dignity of every individual.’

These are the principles that once bound the West together. While members of the broad transatlantic community often disagreed (sometimes vehemently) about specific policies, their shared commitment to these values always allowed them to mend fences and overcome whatever crisis was at hand.

But now the ballroom in the conference hotel, not much larger than a basketball court, must accommodate two fundamentally incompatible worldviews. The Trumpists and their European critics each maintain that the other side has deviated from the norm. As Vance sees it, the biggest threat ‘is not Russia, it’s not China, it’s not any other external actor. What I worry about is the threat from within.’

Despite Vance’s insistence that ‘we are on the same team’, the majority view at the conference was that the US has become a free agent. Just a month after Trump’s inauguration, it has already abandoned its role as a benign hegemon and the leading power within a global community of liberal democracies. To Europeans’ shock and dismay, the US is behaving like a nineteenth-century great power, seeking territorial expansion and pursuing deals with other powers to carve out spheres of influence.

Four years after Biden announced that ‘America is back’, Europeans see the US abandoning transatlanticism and everything it stood for. Trump’s America is not only making deals with the liberal West’s enemies. It is also openly supporting illiberal, anti-democratic forces within the West.

If there is any silver lining, it is that the US’s volte-face has shaken European leaders out of their complacency. They agree that they must come together to increase defence spending and reduce their dependence on the US. If they follow through, we could well end up with a rejuvenation of the transatlantic partnership between two equal powers.

But this outcome is unlikely. The Trump administration’s support for illiberal, anti-European and pro-Russian forces within Europe will make it far more difficult for Europeans to focus on their own security together, even though that is ostensibly what the Trump administration wants.

In this respect, Europeans can agree with Vance: the greatest threat to the West is indeed coming from within.

Some US allies contribute, some loaf. Here’s a numerical assessment

Which US allies have paid their bills, as President Donald Trump would see things? Which, having given the United States little support in return for its security guarantee, now risk losing it?

The short answer, derived from our numerical methodology, is that only nine countries in the US’s main European and Indo-Pacific alliance networks are genuine net contributors to their partnerships with Washington. Australia, Britain and the Netherlands rank highest. Poland, Norway and France are also pulling their weight.

Sixteen countries in those alliances, though not quite free-riders, can fairly be called cheap-riders, according to our assessment, which measures allies’ commitments of blood and treasure. Another 12 may be classified as blatant cheap-riders, notably including Japan, which has the largest economy among the US’s friends.

Our assessment does not focus on Washington’s Latin American and Caribbean allies, but, if it did, they’d all be classed as cheap-riders or blatant cheap-riders.

With Trump taking the unprecedented step of linking protection with payment, our analysis aims to clarify allies’ risks of US abandonment. For the NATO and Indo-Pacific allies, this is no mere academic exercise. European NATO members face an aggressive Russia that has threatened to expand its war against Ukraine. And US allies in the Indo-Pacific confront an increasingly assertive and powerful Beijing, alongside growing nuclear and missile threats from Pyongyang.

Contrary to expectations, we found that proximity to these threats did not necessarily correlate with higher contribution to the US alliance, especially in Europe.

Within alliances that are asymmetric, as any with the US must be, weaker partners cannot fully compensate the stronger partner for protection. They’re not rich enough. But they can contribute (or, in Trump’s parlance, ‘pay’) through such actions as providing international diplomatic support, forward bases or niche military capabilities.

Trump generally attaches greater weight to more readily quantifiable measures, such as defence spending as a percentage of GDP. So we follow him, answering the bottom-line question ‘Who’s paid?’ by asking five component questions with readily quantifiable insights. We aggregate the results into an overall payment score.

First, has the ally met its defence spending targets over the lifetime of the alliance? Washington expects allies to spend at least 2 percent of GDP on defence (though Trump has floated higher standards). By doing so, allies develop properly funded independent military capabilities, reducing the US’s burden of guaranteeing their security. Higher spending also makes them more useful potential partners in US-led coalitions operating outside the alliance areas. Consistently meeting the 2 percent target, amid constant pressures on the public purse, also demonstrates a domestic political resolve that enhances the alliance’s deterrent potential. So we assess lifetime spending by comparing each ally’s total defence expenditure and GDP during its time in alliance with the US. Net contributors meet the 2 percent threshold, whereas net cheap-riders fall short.

Second, has the ally met its defence spending targets over the past decade? Military capabilities, accrued over time, atrophy without sufficient ongoing funding. Washington, for example, built a world-class navy in the American Civil War—which, after years of underinvestment, amounted to just ‘an alphabet of floating washtubs’. Correspondingly, recent defence spending provides insight into which allies have maintained the military capability and preparedness that Washington values. And, again, it shows political resolve. We assess recent spending by considering allies’ defence expenditures and GDPs since 2015 (when combat operations in the last US-led ground-war ended and when Trump’s full engagement in politics began). Net contributors meet the 2 percent threshold, whereas those falling short have either been persistent cheap-riders or, having formerly paid their dues, have now decided to take it easy.

Third, how much US weaponry has the ally purchased? Allied acquisitions of US military equipment, such as aircraft, give Washington several benefits: revenue from and longer production runs of existing systems (for example, F-16s); more work from their maintenance programs; savings from cooperative development of new systems (such as the F-35); and improved US and allied fighting strength thanks to the ease of operating common equipment. We assess weapons purchases by considering allies’ relative shares of US arms transfers and global GDP during their alliance tenure. Scores under 1 indicate comparatively limited purchases, whereas those exceeding 1 denote outsized purchases, and those above 2 show purchases that greatly favour US suppliers.

Fourth, has the ally supported US-led combat coalitions? Allied participation in military operations benefits Washington by providing international legitimation for the action and reducing the burden on the US. Alliances, however, are not wellsprings of guaranteed support: as self-interested actors, allies can decline to render aid or even defect to opposing blocs. Correspondingly, joining US-led coalitions builds good faith with Washington (and implicitly serves as down payment on reciprocal assistance). We assess participation by considering five ground-war coalitions (those for the wars in Korea, Vietnam, Persian Gulf, Afghanistan and Iraq) and five primarily air-war coalitions (in the Iraqi No-Fly Zones and campaigns in Bosnia, Kosovo and Libya and against ISIS). We allocate points according to the burden undertaken: for ground-wars, 8 points for providing frontline combat forces, 4 for supporting units, and 2 for financial assistance. For air wars (which involve less cost and risk), point values are halved. We count allies as consistently supportive if their points exceed 17 points and as reliable combat partners if they exceed 30.

Fifth, has the ally paid a blood price? Allied personnel losses, incurred while furthering Washington’s security interests, represent a shared sacrifice, one that demonstrates the highest form of loyalty (a value cherished by Trump) and implicitly serve as further down payment on reciprocal assistance. Since US-led air wars have featured minimal casualties, we assess losses by counting the number of US-led ground wars after World War II in which allies have suffered service deaths.

We generate overall payment scores by aggregating allies’ performances across all five measures. Each measure receives a 20 percent weighting, and we grant maximum points for:

—Meeting the 2 percent defence expenditure target during the period of alliance;

—Meeting it in the past 10 years;

—Greatly favouring the US in weapons purchases;

—Providing frontline combat forces for each US-led combat coalition; and

—Incurring personnel losses in each US-led coalition ground war.

Partial points are awarded relative to these maximums. Scores below 50 indicate blatant cheap-riding. Those exceeding 70 denote genuine net contributors—for example, 40 for meeting both spending targets, 20 for joining and suffering losses in more US-led coalitions than not, and 10 for outsized weapons purchases.

So, who’s paid?

The US alliance network contains few genuine net contributors, with only nine of 38 NATO and Indo-Pacific allies exceeding 70 points. Moreover, three net contributors deserve qualification: Greece and Turkey generally prioritise each other as a threat rather than NATO’s common adversary, Russia, and South Korea owes the US for its ongoing protection along with its defence during the Korean War.

The Indo-Pacific allies contribute relatively more than their NATO counterparts, averaging higher overall and component scores (apart from participation in operations, among which were three NATO-centric air-war coalitions). Compared with NATO, the Indo-Pacific alliance network also includes a greater percentage of genuine net contributors (28 percent versus 22 percent) and a much lower percentage of blatant cheap-riders (14 percent versus 35 percent).

Notable cheap-riders include Germany and Japan, because they have large economies and therefore great potential military might.

It’s also remarkable that cheap-riding is common in the countries of NATO’s Eastern European expansion. Apart from Poland, Romania and the Baltics, all are blatant cheap-riders, even though their membership has brought added burdens and risks to the alliance, including the US.

Australia is well insulated against Trump’s potential revisions to US alliance policy, which largely (and, in light of our findings, rightly) concentrate on redressing NATO’s relative underpayment. Canberra is immune to similar charges: no other ally has given Washington comparatively more blood and treasure than Australia, and the Albanese government has already begun reversing recent dips in defence spending, pledging to spend 2.3 percent of GDP by 2034. Moreover, Australia’s ‘indispensable’ strategic partnerships with other US allies remain relatively safe: Britain ranks second in terms of its alliance contributions (which bodes well for AUKUS solvency), and Japan, though a definite laggard, has been steadily boosting what Trump would see as its payments. It’s greatly lifting defence spending, increasing host-nation financial support and reinterpreting its constitution to permit collective military action.

How, or whether, Canberra’s unrivalled contributions will affect its bargaining position with Washington remains to be seen and needs supplementing with qualitive analyses (as given here for the first Trump presidency).

Europe is only as weak as it thinks it is

Europe has just held a rapid-fire series of high-profile summits. Following the Paris AI Action Summit and the Munich Security Conference, European leaders gathered for two emergency meetings in Paris to address the disturbing signals coming from the new administration in the United States. In each case, a central question was how Europe can catch up with the US and China technologically and militarily.

By now, it is obvious to everyone that US President Donald Trump’s administration intends to treat Europe with contempt, and that Europeans must take responsibility for their defence and security fully into their own hands. The US is not only sidelining European governments to negotiate an end to the war in Ukraine; it has also thrown its support behind European far-right parties and accused European liberals and democrats of betraying Western values.

Is there a method to this madness? Could the overture to Russia be an attempt to repeat president Richard Nixon’s strategy of breaking the alliance between communist China and the Soviet Union? We know that Trump is obsessed with China, and that Russians themselves have good reason to fear Chinese dominance. If sacrificing some part of Ukraine would allow Trump to strike a blow against his bete noire, he would surely seize the opportunity.

But this Nixonian manoeuvre is unlikely to succeed unless Trump secures Europe’s participation, and that seems unlikely. Paralysed by fear since Russia’s full-scale invasion of Ukraine in early 2022, Europe has forgotten that it can say no. But the Trump administration has shaken European leaders from their slumber. They are now taking an inventory of their strengths and exploring their options. Ukraine is not up against a wall yet. With increased support from Europe, its battle-hardened, highly innovative military can continue to resist Russia’s aggression.

Moreover, the Trump administration has not done much of anything yet except talk. Its real focus is on the home front, where it is busy gutting its own state capacity by mass firings. Trump’s war on the civil service—presumably the prelude to installing a skeleton crew of political loyalists—will inevitably cost the US money and reduce his ability to carry out his policy agenda.

The European Union, for its part, should not respond with the usual search for unity. Given the parties in power in Hungary, Slovakia and elsewhere, that is neither possible nor necessary. The better strategy is to build a coalition of willing EU member states and other countries that Trump is pointlessly alienating, such as Canada, Britain and South Korea.

This seems to be what French President Emmanuel Macron has in mind, judging by his recent statements. Many of his past warnings are now coming true. He remains one of the only leaders, alongside British Prime Minister Keir Starmer, who is not ruling out sending troops to Ukraine or the surrounding area. And lest we forget, France and Britain both have nuclear weapons.

Lost in the coverage following the rupture with the US is the fact that Western Europe is more fearful than Eastern Europe. We are arguably more familiar with crises, but we also are not the ones in Trump’s crosshairs. We do not have a huge trade surplus with the US, and we spend hundreds of billions of dollars on US-made weapons. Unlike the Netherlands (ironically the home of NATO’s new secretary-general), which spent around 1.7 percent of its GDP on defence in 2023, Poland spends almost 5 percent.

Judging by the flurry of recent speeches and statements from Republican officials, one might think that there are actually two Republican parties. On one hand, there is the old party that always sought to raise defence spending, strengthen US military alliances, and confront autocrats such as Russian President Vladimir Putin. On the other hand, there is the party of Trump’s MAGA movement, which seems to believe that national greatness requires dismantling the US state and abandoning longstanding alliances, all justified with primitive blood-and-soil rhetoric and conspiracy theories.

While it feels as if the entire world has changed overnight, the truth is that nothing really has happened yet. If Europeans would only open their eyes, they would see that they have all the resources, talent, and instruments they need to secure their sovereignty and restore peace and stability. They do not need an invitation to the table. They should take inspiration from Ukraine, which has single-handedly halted Russia’s march of aggression through sheer willpower.

This is no time for Europeans to panic. On the contrary, Trump has given us what we need the most: a reason to get our act together.

Trump’s turbulence shifts Australia’s focus to Europe

The SS United States is the largest American ocean liner to be entirely built at home.  To this day, it holds the speed record for crossing the Atlantic Ocean, which it set on its 1952 maiden voyage thanks to its military-grade propulsion.

Informed by a wartime need to move soldiers and materiel to Europe, the luxury liner had been designed to be readily convertible to a troopship that could swiftly deliver a 14,000-strong US Army division anywhere in the world. 

Despite decades of rust and decay, the beauty and power of the now 75-year-old vessel was evident when I had a private tour of United States in Philadelphia some years ago. Once emblematic of US primacy and trans-Atlantic ties, the ship is soon to be an artificial reef off Florida. Its fate and destinationin the re-named ‘Gulf of America’—is a depressingly apt metaphor for what America is becoming. 

The domestic whirlwind sweeping the US is echoed in its foreign policy, with serious implications for Australia’s strategic interests.  President Trump not only has renamed a map feature, he also is opening a gulf between the US and its long-time partners and alliesand Moscow and Beijing are strategic beneficiaries. 

While Australia rightly will remain committed to the Alliance which has underpinned our national security for decades, we must recognise that other countries that share our principled strategic goals will become more important to our national and regional security. 

Regional partnerships remain critical, but European nationswith their own experience of an autocratic neighbourcan help buffer our region against Trumpian caprice and resist growing pressure from a would-be hegemon, China. 

In his first term, Trump’s goading and confrontational bluster was fuelled by his unquenchable thirst for publicity. This time, it is more visceral, informed by conviction (in more than one sense of the word), and underpinned by determined malice and vindictiveness. 

This has been especially evident in his disdain for Ukrainian sovereignty, his dismissive attitude and threats towards NATO and Europe, and his solicitous courting of Russia’s president, Vladimir Putin. 

Barely a month in office, Trump has shifted the strategic balance more decisively in Russia’s favour than the Kremlin had been able to since Putin started his full-fledged, illegal and unjustifiable war of choice against Ukraine in February 2022. Trump deludes himself about the real aggressor, denigrating Ukraine’s President Volodymyr Zelenskyy while trying to monetise Ukraine’s existential war and extort an arms-for-minerals deal in a shakedown that would make Don Corleone blush. 

It is shameful that one democracy should be willing thus to abandon another to the predations of an autocracy. 

We are yet to see any strategic quid pro quo for Trump’s unilateral turn towards the Kremlin. His innately mercurial approach and pathological need to ‘win’ yet may disappoint Moscow, but Europe will scramble in the short term to compensate for any abrupt diminution in US commitment to trans-Atlantic security. Decisive leadership and vision will be vital, but the recent German election results underscore that this is not a given. 

In Who Will Defend Europe? Keir Giles, one of Britain’s leading Russia analysts, examines the self-imposed constraints that prevented the EU and NATO from adjusting fast enough to the end of the post-post-Cold War era and the return of strategic competition. At the core was Europe’s lack of military-industrial readiness and political resolve to confront a revanchist Russia. Those shortcomings must now be reddressed with long-overdue urgency. 

Giles usefully illuminates the wider malaise afflicting other nations grappling with the new world disorder and revisionist risk-takers who see strategic gain in near-term opportunism and confrontation. His arguments underscore an important consideration for Australia in coping with the turbulence and disruption emanating from Washington. 

Australia will need to maintain its natural focus on our Indo-Pacific region, but we will benefit at the same time from deeper collaboration with European counterparts in building national resilience here and elsewhere. By pooling our respective experience of autocratic efforts to subvert domestic cohesion and undermine trust in our democratic institutions, we will be better able jointly to contend with what’s become known as the Axis of Upheaval.

We can learn from the forthright approach of NATO’s newest members, Sweden and Finland.  Both use the concept of ‘total defence’, in which aspects of national strength, including social resilience and economic power, contribute to the defence of the nation, and from the honesty with which their governments articulate the challenges their societies face. 

Though varied in size and heft, Norway and the Baltic nations (Estonia, Latvia and Lithuania) have deeply relevant and valuable experience as frontline states that share not just a continent but a common border with an imperially-minded power whose strategic goals are misaligned with those of democracies that trust in, and rely on, the international rule of law for their security and prosperity rather than the application of military force. 

Poland is also a valuable exemplar.  Like Estonia and Sweden, it has been pushing back against disinformation for years.  It recently put one of its most seasoned diplomats in charge of countering subversion and is also hosting a multinational Communications Group to better co-ordinate efforts at debunking misleading Russian narratives. 

As the SS United States began its final voyage, Susan Gibbs, the grand-daughter of the ship’s designer observed: ‘The ship will forever symbolize our nation’s strength, innovation, and resilience.’  While we must hope that these qualities will endure in the Alliance, we would be prudent to cultivate them more assiduously in our relations with Europe. 

What if the US leaves the IMF and the World Bank?

After withdrawing the United States from the Paris climate agreement and the World Health Organization, President Donald Trump may pull the country out of more international institutions in the coming months. Notably, Project 2025—the blueprint for his second presidency, developed by the conservative Heritage Foundation—calls for the US to exit the International Monetary Fund and the World Bank. Rather than acceding to Trump’s demands, member countries should recognise that a US withdrawal would primarily harm the US and use that to negotiate on their own terms.

On February 4, Trump ordered a sweeping 180-day review of all international organisations to which the US belongs and supports, as well as ‘all conventions and treaties to which the United States is a party.’ The directive aligns with the goals of Project 2025, which dismisses the IMF and World Bank as ‘expensive middlemen’ that ‘intercept’ US funding before they reach projects abroad. If Trump follows this playbook, a US exit would be imminent.

But Project 2025’s authors have clearly misunderstood how these institutions are funded and run. By abandoning the IMF and the World Bank, the US would lose a key source of global influence and economic leverage. In effect, the US would forfeit vital tools for supporting its partners—and withholding financing from its foes.

The proximity of the IMF and World Bank headquarters to the US State Department, Treasury and Congress is no coincidence. The US has consistently maintained tight control over these institutions, shaping their policies and leadership to advance its national interests. The US has always appointed the World Bank’s president, approved Europe’s choice to lead the IMF, and selected the fund’s deputy managing director. It remains the only member country with the power to block major decisions unilaterally, as both the IMF and World Bank require an 85 percent majority.

Unsurprisingly, studies have repeatedly shown that the IMF and World Bank’s lending patterns closely align with US national interests. The US regularly uses the IMF as a ‘first responder’ to protect the US economy. Trump knows this. In his first term, it enabled him to provide his longtime friend, the then-President of Argentina Mauricio Macri, with a US$57 billion IMF program—the largest of its kind in the fund’s history (paid for by all the members of the IMF). Similarly, the US has used the World Bank to bolster security and economic alliances, address terrorism threats and support the postwar reconstruction of countries such as Iraq and Afghanistan following US-led invasions.

Perhaps most importantly, the actual cost of US participation in the IMF and World Bank is far lower than many assume. Every year, the Treasury Department evaluates the financial impact of the country’s contributions to the IMF. In the 2023 fiscal year, it reported an unrealized gain of US$407 million.

The World Bank offers similar opportunities to use US resources. The main arm of the World Bank Group, which has four other subsidiaries, is the International Bank for Reconstruction and Development (IBRD). The cost of running the bank is not paid by the US but by major borrower countries such as India, Turkey, Indonesia, Argentina and the Philippines. Their loan repayments, along with the IBRD’s net income from previous years, largely fund the organisation’s headquarters, staff salaries and other operational expenses (most of which flow directly into the economy of Washington, DC).

Unlike many multilateral institutions, the IBRD does not rely on direct country donations. Instead, it raises capital by issuing bonds and then lends the proceeds to developing and emerging economies. In effect, the IBRD finances itself—issuing US$52.4 billion in bonds in 2024. Although its bonds are backed by guarantees from member countries, the IBRD has never tapped its callable capital. Consequently, each shareholder provides a small portion of its committed share as ‘paid-in capital’. For the US, that amounts to US$3.7 billion—about 19 percent of the US$20 billion in subsidies the federal government has given Elon Musk’s SpaceX over the past 15 years.

To be sure, the US contributes to the World Bank in other ways. In 2018, for example, Trump’s first administration approved a US$7.5 billion capital increase for the IBRD. This does not demand more financial contributions from the US. But the US gets much in return. For example, its contributions to the World Bank’s concessional lending arm, the International Development Association, are voluntary and renegotiated every three years, giving the US enormous influence over the association’s lending.

Simply put, withdrawing from the IMF and the World Bank would be a grave mistake, stripping the US of its ability to shape the rules of the international monetary order and pursue its strategic interests. Yet at least some in the Trump administration appear tempted.

Even if the US does not withdraw from the World Bank and instead withholds its funding, member countries representing 70 percent of the total voting power could suspend its voting rights for failing to meet its financial obligations. The US would then lose all rights under the Bank’s Articles of Agreement—except the right to withdraw—while still being bound by its existing commitments. If the suspension lasts more than a year, the US will automatically lose its membership unless the same majority votes to reinstate it.

US President Theodore Roosevelt famously said foreign policy should ‘speak softly and carry a big stick.’ The Trump administration believes in speaking loudly and letting Musk use his big stick to smash things. Other countries may be shocked, but they are not helpless. By staying focused, working together, and acting decisively, they can still salvage the multilateral system.