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不被信任的代價 -- Keren Yarhi-Milo
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我曾批評過,川痞在消耗或搞垮美國國力之外,他對美國最大的傷害之一就是:搞臭了美國在國際上的「可信度」。亞希-彌珞教授這篇文章對這一點有深入分析,請參考。
此文雖然以川普政策做為「樣本」,亞希-彌珞教授所闡述的道理屬於原則性,故置於此版。 The Price of Unpredictability How Trump’s Foreign Policy Is Ruining American Credibility Keren Yarhi-Milo, 10/02/25 For decades, U.S. foreign policy has depended on credibility: the belief that Washington would honor its commitments and that its past behavior signaled its future conduct. The United States, for instance, was able to develop a large network of allies because its partners trusted that, if attacked, Washington would defend them. It could strike free-trade deals with countries around the world and negotiate peace agreements because, generally speaking, it was seen as an honest broker. That is not to say the United States has never surprised, or that it never reneged on a promise. But for most of its modern history, it has been a trustworthy actor. But unlike any U.S. president before him, Donald Trump has abandoned all efforts to make Washington reliable or consistent. His predecessors had also, at times, made decisions that undermined American credibility. But Trump’s lack of consistency is of an entirely different magnitude—and appears to be part of a deliberate strategy. He proposes deals before backing down. He promises to end wars before expanding them. He berates U.S. allies and embraces adversaries. With Trump, the only pattern is the lack of one. Trump’s theory of the case is simple. By keeping friends and foes off balance, the president believes he can secure quick wins, such as modest increases in European defense spending. Trump also thinks that unpredictability affords him greater wiggle room in international affairs by ensuring that allies and adversaries are always second-guessing his next course of action. Finally, Trump thinks that he can frighten and thus deter opponents by appearing unhinged—an idea that political scientists call the madman theory. As Trump once boasted, Chinese President Xi Jinping would never risk a blockade of Taiwan while he is president because Xi “knows I’m fucking crazy.” As some analysts have pointed out, Trump’s approach has delivered a few temporary international victories. But in the long term, Trump’s approach to global politics is not likely to strengthen the country. Other states will work to flatter Washington for a time, in hopes of avoiding U.S. penalties. But eventually, governments will look to protect themselves by aligning with other countries. The United States’ list of adversaries will, accordingly, grow. Its alliances will weaken. Washington, in other words, could find itself ever more isolated—and without any clear path to reestablishing its reputation. 表單的頂端
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GOOD NAME U.S. presidents have consistently argued that, to protect American power, Washington’s commitments need to be credible. Harry Truman, for instance, decided to intervene on the Korean Peninsula in order to check Soviet expansionism. “I remembered how each time that the democracies failed to act, it had encouraged the aggressors to keep going ahead,” he later said, by way of explanation. Lyndon Johnson escalated the war in Vietnam largely out of fear that retreat would signal that Washington wasn’t serious about containing communism. George W. Bush justified the 2007 surge in Iraq on the grounds that withdrawal would undermine U.S. credibility; Barack Obama kept U.S. forces in the country for similar reasons. And when Obama hesitated to enforce his self-proclaimed “redline” against chemical weapons use in Syria, he was pilloried by his critics for emboldening the United States’ enemies. (He later told a journalist that “dropping bombs on someone to prove that you’re willing to drop bombs on someone is just about the worst reason to use force.”) After the botched withdrawal from Afghanistan, Joe Biden was also criticized for undermining Washington’s reputation for reliability, resolve, and competence. What effect these leaders’ decisions actually had on American credibility is unclear. The causal relationship between a state’s decisions and the way those decisions are perceived is complex and fuzzy. The Dartmouth political scientist Daryl Press, for instance, has argued that states look to present interests and capabilities, rather than past behavior, to measure resolve. Other scholars, including Roseanne McManus, have shown that leaders’ reputations for resolve matter only under certain conditions during crises. And research I have done with the political scientist Alex Weisiger shows that countries that have backed down in the past are twice as likely to be challenged in the future. Other research of mine demonstrates that credibility is shaped as much by perceptions of consistency and reputations for resolve, built up over time, as it is by the costly signals that leaders attempt to send and how they are received by adversaries. Leaders, in other words, think back to their past interactions with adversaries in estimating intentions just as much as they take into account the actions those adversaries are taking during a particular crisis. But when it comes to Trump, these findings are almost beside the point. Whatever it is that scholarship says a government needs to do to establish credibility, Trump is doing the reverse. The president has openly questioned the most sacrosanct of U.S. defense guarantees—NATO’s Article 5 commitment to collective defense—by declaring that if allies do not “pay up,” they cannot expect protection. He has pulled the United States out of multilateral agreements, such as the Paris climate accord and the Iran nuclear deal, without regard for reputational costs. He even reneged on the U.S.-Mexico-Canada trade deal, which he negotiated and signed during his first term. And he has flipped back and forth between criticizing and praising Russian President Vladimir Putin—one of Washington’s most determined adversaries—with no clear trigger. His recent meeting with Putin in Alaska was a case in point. It was organized hastily and meant to burnish Trump’s reputation as a dealmaker, but he got nothing concrete in return from his Russian counterpart. Most observers say the American president was played. Trump may be aware of what his behavior is doing to American credibility, or the consequences may elude him. But either way, the reputational costs for consistency and reliability clearly do not affect his decisions. The president does not want to be credible so much as he wants to gain the psychological upper hand to score quick victories. If that requires disregarding long-standing American commitments, so be it. He wants maximum flexibility: the ability to do whatever he wants, whenever he wants to, in order to get his way. AGENT OF CHAOS Trump’s unpredictability is clearly intentional. The president relishes in being chaotic and understands that his threatening behavior helps achieve certain aims, such as his trade deals. “We have to be unpredictable,” Trump said when first running for president in 2016. “I don’t want them to know what I’m thinking.” But that does not mean the president’s behavior is always attached to a strategy. Instead, it is often the byproduct of mood swings—a version of what the scholar Todd Hall calls “emotional diplomacy.” Fear, anger, disappointment, and revenge are now common drivers of American statecraft. It is a fact many countries have discovered the hard way. During his first term, for instance, Trump praised Canada’s then prime minister, Justin Trudeau, and struck a trade agreement with Ottawa. During his second, he accused the country of not doing enough to curb the flow of fentanyl and other narcotics and then hit it with a suite of tariffs. Likewise, Trump repeatedly celebrated his warm relationship with Indian Prime Minister Narendra Modi during term one, only to turn on New Delhi after it denied that Washington helped stop its May conflict with Pakistan. Ukrainian President Volodymyr Zelensky’s relationship with Trump, meanwhile, has moved in seemingly the opposite direction. At first, Zelensky incensed Trump by correcting him in a White House meeting, prompting Washington to temporarily suspend aid to Kyiv. But then Zelensky made nice, and last month, Trump declared that he supported Ukraine’s quest to take back all its land from Russia—something he previously declared unachievable. For foreign leaders, keeping up with Trump’s shifting moods and whims is nearly impossible. But there are a few different strategies they can deploy to try to win the president over, or at least to limit the carnage. The first is flattery—feeding into Trump’s grandiose self-image. This technique has been particularly popular among Washington’s closest partners. In addition to Zelensky, for instance, NATO Secretary-General Mark Rutte called the U.S. leader a “pragmatic peacemaker” after his August meeting in the White House, almost certainly in an attempt to prevent the president from abandoning the alliance. Israeli Prime Minister Benjamin Netanyahu, meanwhile, praised Trump’s “decisive leadership” while successfully pressing him to join Israeli airstrikes on Iran. But even neutral countries have sought to play to Trump’s arrogance. Pakistani Army Chief Asim Munir, for example, nominated Trump for a Nobel Peace Prize in an effort to split the United States from India. Flattery, however, quickly loses its value as more leaders deploy it. If every country flatters Trump, after all, none of them gain leverage. And for countries that have grown angry at being bullied, praising Trump is sometimes too unpalatable to countenance. As a result, some governments have adopted the opposite approach—confrontation. Brazilian President Luiz Inácio Lula da Silva, for example, has responded with defiance as Trump applies high tariffs to his country and sanctions its judges for convicting former President Jair Bolsonaro over his plot to steal an election. Modi has taken an aggressive line toward Trump, as well. But although these measures can help improve leaders’ popularity at home, they rarely cause Trump to back off, which can then cause domestic backlash of its own. Swiss President Karin Keller-Sutter had a confrontational phone call with Trump after Washington hit her country with massive tariffs, but when Trump didn’t budge, she was accused by her domestic opponents of mishandling relations. There is a middle approach between flattery and confrontation: hedging. It involves being flexible and cozying up to multiple major powers, including some U.S. adversaries. Many Latin American countries, for example, are trading and cooperating more with Asia and Europe in the wake of Trump’s election while still working with Washington. Gulf monarchies flatter Trump even as they strengthen ties with China. French President Emmanuel Macron has urged Europe to pursue a course of “strategic autonomy” that weans his country and the continent off their dependence on both China and the United States. These approaches are not mutually exclusive. Uncertain of how to respond to Trump’s volatility, much of the world flatters Trump one day, confronts him the next, and then hedges the day after. But ultimately, none of these tactics have delivered more than temporary success. Trump continues to shift his approach to the world almost minute by minute, depending on how he feels. AT WHAT COST To his credit, Trump has scored some legitimate achievements by being unpredictable. Consider, for example, his bombing of Iran, which set back the country’s nuclear ambitions. When asked whether he would strike Iran after Israel began its bombing campaign, he deliberately waffled. “I may do it, I may not do it,” he said. “I mean, nobody knows what I’m going to do.” The result was uncertainty in Israel and Iran about how they should position themselves. His decision to ultimately intervene militarily was driven by his desire to get rid of perceptions that he was weak and backed down when confronted, as well as by his urge to be seen as a winner. By demonstrating to other countries his willingness to flip quickly and turn on them, Trump may have thus bolstered American deterrence. His handling of allied defense budgets could also be considered a victory. For decades, American leaders have pushed for the rest of NATO to up its military spending but never challenged Article 5. European countries thus felt relatively little pressure to act. By casting doubt on collective defense, however, Trump was able to inject some urgency, and at the 2025 Hague summit, European allies pledged to raise their defense spending to a remarkable five percent of GDP. The U.S.-European tariff standoff followed a similar script. Under threat of escalating tariffs, Brussels made trade concessions to Washington over this past summer that were once deemed unthinkable, including an agreement to purchase $750 billion worth of U.S. energy. In response, Trump declared victory. European Commission President Ursula von der Leyen, meanwhile, praised his “decisive leadership.” But it is unclear to what extent these victories will be lasting. Trump, for example, may have coaxed more defense spending out of Europe, but at the cost of making NATO more fragile. Even though NATO members are spending more on their own security, the alliance’s strength relies primarily on its collective defense guarantees, which Trump has now weakened. After all, if the mighty United States itself will not respond militarily when a NATO ally is attacked, then the alliance will be weaker even if European countries increase their defense budgets. Trump’s tariffs on the continent tell a similar story: Washington may have extracted its economic concessions, but Europe is now increasing its economic and political autonomy. As a result, the United States will soon have less sway with the continent. In fact, it will have less sway over the whole world. As American credibility deteriorates, it may become harder for Washington to negotiate or facilitate peace deals—as it often does—which will result in a more volatile international system. Washington will have fewer friends. Many American politicians, including some Republicans, have warned about the long-term consequences of Trump’s chaotic global decisions. Even if he is succeeded in office by a close political ally, the next U.S. president might try to act in a more predictable manner (particularly if they are even-tempered). But reestablishing American credibility will be easier said than done. A country’s reputation extends beyond its present leader: when Trump repeatedly breaks promises or abruptly shifts course, it deepens skepticism not only about him but also about the reliability of American institutions altogether. And once credibility is lost, it is hard to recover. The next U.S. president, no matter their approach, will inherit allies who flatter but also hedge, adversaries who test and wait, and a system in which the United States’ word simply carries less weight than it once did. Washington, in other words, will have fewer friends. For many U.S. partners, hedging will become a necessity as flattery loses its effect and direct confrontation becomes too costly. Meanwhile, Washington might acquire new adversaries, as countries spurned by Trump seek defense partnerships with American competitors. Deterrence will grow more costly, as U.S. officials contend with a growing number of threats. And Washington will have to spend more to reassure the allies it still has. The United States might find itself with fewer close allies even without Trump, as the international system becomes increasingly multipolar. But the current president’s unpredictability is likely hastening this process. Trump may leave office convinced that his unpredictability made Washington stronger and that Americans will benefit from the resulting configurations of power and transactional deals. He may think that, by rejecting the need for credibility, he freed the United States from constraints that tied the hands of previous presidents. But history is likely to show otherwise: that Trump replaced credibility with volatility, leaving behind a United States that is less trusted.
KEREN YARHI-MILO is Dean of Columbia University’s School of International and Public Affairs and the Adlai E. Stevenson Professor of International Relations. She is a co-editor, with Hillary Rodham Clinton, of Inside the Situation Room: The Theory and Practice of Crisis Decision-Making. More by Keren Yarhi-Milo Subscribe to Foreign Affairs This Week Our editors’ top picks, delivered free to your inbox every Friday. Sign Up (請至原網頁登錄) * Note that when you provide your email address, the Foreign Affairs Privacy Policy and Terms of Use will apply to your newsletter subscription.
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《從中國製造業談川普關稅政策》小評
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本欄上一篇第一部份討論中、美兩國的「生產力」和「外(國直接投)資」;第二部份批評川普的關稅政策,此議題請參考本欄其它各篇。兩位作者在這兩部份都旁徵博引,提供了豐富的數據和專家分析;值得參考。 我根據常識就「生產力」和「外(國直接投)資」兩項略做補充: 1a) 美國產品屬於高端或高價位型,其利潤率當然也高。中國過去靠民生工業起家,賺的都是蠅頭小利。兩位作者以此來評比生產力難免偏頗,或有如拿橘子跟蘋果相比。至於「成本」這個因素也完全不被他們提及。此處請參見此欄2025/11/28貼文關於中、美兩國核子反應爐「生產力」的比較。 1b) 美國國防工業產品市占率以及隨之而來的高價位和銷售率,跟她的軍力和國際地位分不開(經濟帝國主義?);此處請參考本欄2025/10/28貼文。假以時日,中國在這方面也有得拚。 2a) 在吸引「外資」部份,兩位作者的數據和相關分析當然都沒有問題;此議題請參考此欄第二篇貼文。除了美國國際金融龍頭地位5-10年內難以動搖外,她的軍力和國際地位,以及美國金融市場「自由化」程度兩者,也是「外資」對美國趨之若鶩的重要原因。中國在這方面的確有待努力。只是,中國在「國力」上雖然跟美國並駕齊驅,甚至有一馬當先的機會;但是,基於國情和制度兩方面的考量,金融市場「自由化」程度可能在10-20年內難以跟美國相提並論。 2b) 中國過去40-50年「改革開方」的經驗和成果,顯示「外資」是一個重要推動力。未來「外資」的成長率不會大。過去10年來雖然政府非常重視,也很努力,可惜成效未如所期。或許「火箭炮」政策已經不夠看,中共中央亟需推動堪比「核子彈頭」的「內需政策」。
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從中國製造業談川普關稅政策 - David Hebert/Peter C. Earle
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The Truth about Chinese Manufacturing David Hebert/Peter C. Earle, 11/17/25 Summary What is it about the American experience that makes us so much more productive on a per-capita basis? Imagine for a minute that you have the world’s greatest chef working in your restaurant. The food is so incredible that people regularly travel from miles away to dine at your restaurant. Then, a new restaurant opens, and while it sells an impressive quantity of food, everyone is very much aware that its quality is lacking. While your restaurant’s output has remained steady, you decide that you need to protect your restaurant from this new entrant. To do so, you actively make it harder for your chef to buy ingredients, telling them, “if you want ingredients, you’ll have to grow them yourself!” If this sounds absurd, that’s because it is. Unfortunately, this is exactly what Washington politicians are doing to the manufacturing sector in the United States right now. Why is that? Because of, primarily, China’s supposed manufacturing “dominance.” It has become standard parlance for members of both parties to wax poetically about the “hollowing out” of the American manufacturing industry. said as much in 2022 as did just this past April. For the most part, these two are referring to jobs in manufacturing, which have certainly declined over the last 50 years. However, some go even further, purporting that “we don’t make anything anymore.” President Trump said as much in 2015 while on the campaign trail to his first term in office, echoed this in 2023, and joined this chorus just this past March. What are the facts?. China’s manufacturing output for 2024 reached a staggering $4.67 trillion in total value added. The US, by comparison, produced a mere $2.91 trillion. By all accounts, in raw terms, China is producing about 60% more output than we are. Manufacturing, Value Added (in trillions of USD). Source: 請至原網頁觀看製造業附加價值統計圖 However, what is often overlooked, despite its widespread acknowledgment in other contexts, is the fact that China has a very large population. And when it comes to manufacturing, the numbers are simply staggering. In 2020, the year of China’s most recent census, over 120 million people were working in the manufacturing sector. Later, independent reports have the Chinese manufacturing workforce at over 212 million people. This means that the average Chinese manufacturing worker generates between $22,028 and $38,916 in value-added. By comparison, America employs just 12.7 million manufacturing workers, which is 6-10.6% of the number of manufacturing workers that China employs. On average, US manufacturing workers generate $229,133, which means our workers are between 6 and 10 times as productive as the average manufacturing worker in China. This is absolutely incredible and underscores that those who claim “we don’t make things anymore” or that “China is destroying our manufacturing sector” are, in a word, wrong. Does China produce more raw output than we do? Of course. But this is not because they are an economic superpower. It’s because they have a significantly larger number of people employed in manufacturing than we do. In fact, they have about as many, if not more, people employed in manufacturing alone as the US has employed total. But on a per-capita basis, the US is by far and away the leader, and it’s not even close. What is it about the American experience that makes us so much more productive on a per-capita basis? First, we have a lot of capital. One crucial measure garnering significant attention today is foreign direct investment, which has steadily poured into the United States, decade after decade, with a particular focus on manufacturing. In fact, this is where the Bureau of Economic Analysis says, foreign direct investment has “increased the most.” Furthermore, most of this capital is privately directed, in the sense that private companies must attract capital and then deploy it in ways that are largely at their discretion. While they are free to reap the rewards of successful entrepreneurial efforts, they must also shoulder the blame for failed attempts. This profit-and-loss system provides useful feedback on the efficacy of any economic undertaking. In contrast to China, the difference is night and day. Despite privatization reforms over the past several decades, China remains, for the most part, a state-led economy, with the Chinese Communist Party able to direct resources toward politically determined goals. This can be a viable strategy in the short run, but it is fundamentally incompatible with long term, sustained economic progress. Understanding this helps us better comprehend why China often seems to be on the verge of soaring heights and crashing lows. 請至原網頁觀看美國歷年國外直接投資與國內直接投資金額關係統計圖 Second, historically, we have been at the forefront of attracting talent from around the world. As Ronald Reagan said, We lead the world because, unique among nations, we draw our people, our strength, from every country and every corner of the world. And by doing so, we continuously renew and enrich our nation. While other countries cling to the stale past, here in America, we breathe life into dreams, we create the future, and the world follows us into tomorrow. Because we are so attractive as a destination for employment, the world’s best and brightest, for the most part, dream of working in America. China, by comparison, derives its strength from its substantial population, which is currently ranked second in the world, behind only India. China’s population is so large, in fact, that they have more people than the following five most populous countries combined. With that many people, producing as much output as they do across so many sectors is not a mystery. A troubling statistic for China, though, is the remarkably low rate of immigration into its country. Recent statistics indicate that the total number of foreign-born residents is around one million, giving them arguably the least diverse economy in the world, with less than 1% of their population being considered “migrants.” In the US, that figure is about 15-20%. Put simply, despite their supposedly impressive economic prowess, very few people want to move there, which means that if they're going to stay at the cutting edge of technology, they must steal intellectual property from others and try to reverse engineer it. However, because they steal only the successes, they lack knowledge of the failures that contributed to their creation. Knowing what did not work is, in many ways, just as important, if not more important, than simply knowing what did work. As a result, their attempts at copying other countries’ innovations are not facsimiles; they are knockoffs known for their low quality and low dependability. A Troubling Turn (for the US) Despite these enormous advantages, Washington is undermining its own position. Tariffs, export restrictions, and protectionist policies — defended under slogans such as “economic security” and “reshoring” — are making it more expensive for U.S. firms to obtain the necessary inputs. According to the Peterson Institute for International Economics, average U.S. tariff rates are now at their highest levels in more than 80 years, raising costs for intermediate goods and materials across the board. The National Association of Manufacturer estimates that tariffs on steel and aluminum alone have cost U.S. firms over $9 billion per year, inflating prices for machinery, vehicles, and construction equipment. Ironically, these same policies strengthen China by hobbling America’s most efficient manufacturers — those who rely on global supply chains to remain competitive. Tariffs don’t protect industries; they tax them. They act as a drag on productivity, pushing firms to pay more for once affordable components, thereby reducing their global market share. Just as damaging is the growing hostility toward skilled immigration. H-1B visa reforms and bureaucratic slowdowns have sharply reduce the inflow of high-skill labor. The National Foundation for American Policy reports that the approval rate for initial H-1B applications have fallen from roughly 95 percent in 2015 to around 75 percent in recent years. The result is that talented engineers, programmers, and scientists who once came to the U.S. are now choosing Canada, Australia, or Europe instead. A Path Forward The way forward is clear: stop sabotaging the chef. America’s manufacturing sector doesn’t need protection — it needs freedom. Lift the tariffs that act as hidden taxes on production. Reform immigration rules to attract and retain global talent rather than repel it. And resist the political impulse to micromanage industry through subsidies, mandates, and industrial policy experiments that inevitably favor well-connected firms over innovative ones. Economic interdependence is not a weakness to be “weaponized.” It is the foundation of resilience. True security comes not from isolation but from openness: diversified supply chains, dynamic competition, and the freedom to trade and innovate. China will remain a major player in global manufacturing, but size and strength are not synonymous. The U.S. continues to lead the world in productivity, innovation, and the ability to translate ideas into value. Policymakers would do well to remember that success in markets doesn’t come from fear or protectionism — it comes from letting the best producers do what they do best. After all, no great restaurant ever stayed great by locking its chef in the garden and making them grow their own ingredients. Dave Hebert, Ph.D, is a senior research fellow at the American Institute for Economic Research. Peter C. Earle, Ph.D, is a senior fellow at the American Institute for Economic Research.
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K形經濟造成川普基本盤鬆動 - Sasha Rogelberg
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K形經濟:請見「超連接」。 請參考:Fox News’ Bret Baier Delivers Damning Poll Numbers for Trump 我在拙作《國際現勢:2025》說:「大多數美國老百姓雖然很好騙,但在自己的福利和荷包大幅縮水、失血以後,他們翻臉比翻書還快」。下文支持我這個判斷。另請參見此欄開欄文、此文(該欄2025/11/14) 、以及本欄之前四篇報導/分析。 ‘If voters feel like things aren’t working, they fire their politicians’: K-shaped economy math shows why Trump’s base feels betrayed Sasha Rogelberg, 11/16/25 Days before President Donald Trump was sworn in for his second term, he acknowledged the high prices Americans were seeing at the gas pump and grocery store, pledging to bring them down. “It’s always hard to bring down prices when somebody else has screwed something up like [President Joe Biden] did,” Trump said in a news conference in early January. “We’re going to have prices down. I think you’re going to see some pretty drastic price reductions.” According to exit polls from the November 2024 election, Americans resonated with Trump’s messaging around prices. Exit polls indicated a higher proportion of voters without college degrees and those making less than $100,000 per year cast their ballot for Trump, cementing a rightward shift for the working class that has been trending in that direction for about a decade. But those patterns are shifting once more as emerging economic data shows that the K-shaped economy, coined on Twitter during the pandemic as a half-joking response to debates about whether the recovery would be “U” or “V” shaped, is real. One year into Trump 2.0, the notion is becoming reality of diverging fortunes for wealthy and poor Americans. It has tanked confidence in the economy—and the president who promised to solve the affordability crisis in the U.S. While a wave of working-class voters flooded the Republican party ahead of the 2024 presidential election, that same group sent a loud message in the early November off-year elections, electing Democrats in every single race in which they were running. This included moderates Mikie Sherrill and Abigail Spanberger in New Jersey and Virginia, respectively, and firebrand democratic socialist mayors in New York and Virginia: Zohran Mamdani, and Katie Wilson. Their common theme: affordability. Economists have made it clear that something real is shifting: The rich are getting richer, and the poor are getting poorer. This week, Apollo chief economist Trosten Slok noted wage growth for the lowest-income Americans plummeted to its lowest in about a decade, while wage growth for the highest-income group surpassed all other income levels, citing data from the Federal Reserve Bank of Atlanta. Moody’s Analytics found last month that for the second quarter of 2025, the top 10% of households made up nearly 50% of all consumer spending. According to calculations by New York University economics professor Edward Nathan Wolff, the top 20% of America’s wealthiest households own nearly 93% of all stock. Comments from executives in third-quarter earnings made clear that the Fortune 500 see a “bifurcated” economy. Delta seemed almost surprised at how its premium and business travel seats are due to eclipse the main cabin in 2026, a year ahead of schedule. While McDonald’s CEO talked about a “bifurcated consumer base,” with traffic growth strong among higher-income consumers. By and large, fast-food companies boomed in the quarter while higher-priced “slop bowl” chains such as Sweetgreen, Cava and Chipotle have been struggling to arrest a decline in same-store sales as consumers trade down. The housing market, only in recent memory a booming segment of the economy where many locked in huge equity gains at low mortgage rates, has become nearly frozen because of the “lock-in effect.” It’s simply unaffordable to sell your house and buy another one with mortgage rates above 6%. The first-time homebuyer age hit 40 years old in 2025, according to the National Association of Realtors, revealing that only people with some degree of wealth accumulated over many years of adulthood can afford to make purchases in the housing sector. “We’ve probably made housing unaffordable for a whole generation of Americans,” The Amherst Group CEO Sean Dobson said at the ResiDay real-estate conference in New York in November, telling Fortune on the sidelines that people have done what they’ve been told by getting an education and good jobs “and then they didn’t get what they were promised.” Trump’s role in the K-shaped economy Some of these indicators can be traced back to Trump, who himself rode affordability concerns to a 2024 election victory that once seemed implausible. Pantheon Macroeconomics analysts Samuel Tombs and Oliver Allen said in a September research note that suppressed income growth was a result of Trump’s tariff policies, which had forced businesses to slash wages in order to preserve margins that took a hit from the import taxes. In the wake of the November elections “Data show wage growth has slowed more in the trade and transportation sector, and to a lower level, than any other major sector since the end of last year. Fears workers would be able to secure larger wage increases in response to the tariffs look highly unlikely to be realized,” the analysts wrote. Peter Loge, a professor of media and public affairs at George Washington University, who served as senior advisor to the FDA commissioner under President Barack Obama, told Fortune that Trump’s economic priorities can be ascertained by whom he surrounds himself with. “President Trump has installed very wealthy people with very senior positions in government, which isn’t a bad thing, but it’s limiting,” Loge told Fortune, naming in particular Elon Musk, who served as head of the Department of Government Efficiency in the administration’s first months. Loge said the installation of these wealthy figures, as well as the courtship of powerful tech CEOs like Larry Ellison and Sam Altman, illustrates priorities to serve these individuals. The president signed a law in July for a roughly $4 trillion package of tax cuts, primarily benefiting companies and wealthy Americans. Those wealthy individuals, in turn, pour their money into the stock market, feeding the top half of the K, Loge noted. These factors are on top of the administration’s controversial decision to halt funding for SNAP benefits during the government shutdown and require millions of low-income Americans to reapply for the benefits in an effort to combat “fraud,” according to Agriculture Secretary Brooke Rollins. But to be sure, the K-shaped economy has existed for decades, economists say, and other economic factors have little to do with the president’s policies. The “low-hire, low-fire” labor market of 2025, for example—which has in particular battered lower-income, entry-level workers such as Gen Z—is more a result of businesses becoming more conservative in their hiring and firing practices following a pandemic-era labor shortage and a hiring binge that may have gone too far during the so-called “Great Resignation.” Changing sentiments Lower-income Americans are noting these changes, with consumer sentiment similarly diverging in a K-shape, something Peter Atwater, adjunct professor of economics at William & Mary, who popularized the term “K-shaped economy”, believes is being overlooked in the K-shaped conversation. Last month, the bottom third of income levels felt much less confident about the U.S. economy compared to the top third, according to data from the University of Michigan’s Survey of Consumers. “What we have today is a small group of individuals who feel intense certainty paired with relentless power control—and on the other, it is a sea of despair,” he told Fortune. “And that’s the piece that never gets talked about.” Atwater’s diagnosis rhymed with a Financial Times column from Robert Armstrong, of Unhedged, who wrote this week that America has always been unequal, but what makes this moment K-shaped is a loss of faith in future earnings among the lower-income cohort. “It could be,” he wrote, “that after five years of going nowhere, households in the bottom half of the wealth and income distributions have started to anticipate a bleaker future and are changing their spending habits accordingly.” Nose-diving confidence in the U.S. economy is reflected in the attitudes of Republicans and independents who voted for Trump. About 30% of Republicans believe Trump has fallen short of their expectations regarding the economy, according to a national NBC News poll this month. Two-thirds of independents blamed Trump for increasing inflation, per an ABC News/Washington Poll poll conducted in October. CNN polling data meanwhile shows Trump’s approval rating has reached its lowest level since he took office the second time. “People want to know that they can afford a medical bill if they get sick, their kids will have a better future than they do, or have a chance of a better future,” Loge told Fortune. “And if voters feel like things aren’t working, they fire their politicians in charge to hire new ones.” “Voters are pretty well saying, ‘We don’t think whatever the Republicans are doing is making stuff less expensive. We need life to be more affordable and less chaotic. It’s pretty unavoidably chaotic. Now we’re going to bring in new people to try a new thing,’” Loge said. Trump has noted the changing political attitudes following the election, floating a raft of proposals aimed at easing consumers’ pain, such as a 50-year mortgage and $2,000 rebate checks coming from tariff revenue. He said in a Fox News interview earlier this month his party has not done enough to assure Americans about the state of the economy. “We learned a lot,” Trump said. “Republicans don’t talk about it. They don’t talk about the word affordability.” UBS Wealth Management’s global chief economist, Paul Donovan, warned that “affordability” may prove to be an enduring, even intractable problem in both economic and political discourse. In his weekly blog, Donovan wrote that the concept is “subtly different” from both “inflation” and from the “cost-of-living crisis.” It’s an anger about the feeling “I can’t afford that,” he added, one that could be tricky to disprove. “People want things (generally ‘better’ things than they currently have) and are upset that they cannot afford those things,” Donovan wrote. “This may make affordability a more enduring problem than in the past.” He added that social media “fuels resentment” about affordability, as it presents “carefully curated, idealized lifestyles” that are just out of reach to anyone with a smartphone. Shifting political tides Loge hesitated to make predictions about what this changing sentiment means for upcoming elections, particularly if Trump’s tariffs are indeed successful, which could result in an outpouring of support for future Republican candidates. However, he suggested legacy or incumbent politicians from both major parties will have challenges getting elected. Atwater believes the desire—and need—for affordability transcends party lines. “We, particularly those on the left and the right and the establishment, woefully underappreciate how purple the bottom is,” he said. “The unified despair, the sheer desperation on both sides of the aisle, and that will continue to lead to an anti-establishment vote,” he said. Atwater suggested that so long as Americans perceive a broadening wealth gap, lower- and middle-income consumers will continue to harbor resentment for the ultra-wealthy that could simmer over. He cited a 2011 study from the New England Complex Systems Institute, which linked social unrest in North Africa and the Middle East during the Arab Spring of 2010 to rising food prices. “This is a crisis of confidence,” Atwater said. “Sadly, those who are in the best position to address it seem at best indifferent, and that does not go unnoticed by those at the bottom.” Nick Lichtenberg contributed reporting. This story was originally featured on Fortune.com
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川普經濟實情與未來走勢展望 - umair Haque
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我對經濟和美國經濟實況都不熟悉;沒有資格討論下文作者的「展望」是否靠譜。存檔備查於此,六個月或一年以後再和當時現實印證。 The Reality of Trump’s Economy, Or, Why Americans Are About to Get a Lot Poorer umair haque, 08/19/25 It’s criminal that I have to write this, but…I’ve rarely seen such levels of willful delusion. So let’s go through a few basics. About the economy, Trump, the “trade deals,” the tariffs, and what the effects will be. Because Americans, bombarded by propaganda, are badly deluded about it all. Right about now, Trump’s effectively struck “trade deals” putting in place 15%+ tariffs on America’s largest trading partners. This is being spun as a good thing. I’ve heard this, amazingly enough, from people’s financial advisors, and if yours are telling you this, run. Or at least back away slowly. Americans pay the tariffs. We should all know this by now. Tariffs aren’t revenues paid by, say Europe, Japan, or anyone else. They are owed to the US government, by importers, who usually just pass the costs on to consumers. So let me say it again, because this Delusion Number One: they pay the tariffs! Those dirty foreigners! No, dumbo, you pay the tariffs. But that’s just the beginning. Let’s talk about tariffs as a “corporate tax,” the spin being that somehow, corporations will eat the cost of the tariffs. The tariff rate is 15%+. The average profit margin of the S&P 500 is about 12%. Does that give you an indication of why companies don’t eat tariffs? Because this is what we see historically: they’re passed down the line. Now you can see why. If companies “ate” 15%+ tariffs, the average company in the S&P 500 would be bankrupt. And those are the most powerful companies in the world. The everyday mom-and-pop business has far less ability to eat tariffs. So. Delusion Number Two: companies are going to eat the tariffs! It’s a corporate tax! Wrong, dumbo, you’re going to pay the tariffs, because it’d bankrupt even the S&P 500. Now, that little thought exercise matters, because it’s about to become reality. See the S&P 500 soaring to new heights? That’s Delusion Number Three: Trump’s Winning the Trade War!! Quick, remortgage the house and buy some shares!! Dear Lord, please don’t do this. Just think about the above with me. The tariff rates are so high that they’d bankrupt the S&P 500. Following along now. If that’s the case, then this stock market rally is about to collide headlong with reality. Because at some point, these companies, which’d go broke if they ate the tariffs, will pass them along. And then they’re going to see profit margins shrink. Because when prices go up, demand goes down. And when that happens, this market rally is going to be revealed for what it really is: a bubble, blown by Trump’s powers of seduction. A lot of people are going to lose a lot of money. And they won’t know what hit them, which is why I just explained it to you with crystal clarity. How much damage are we looking at? That brings me to delusion number four: the tariffs are a stimulus for the economy? This one may be the most bizarre of all. American households are at the brink. 70% of people live paycheck to paycheck, can’t afford an emergency, etcetera—the litany of statistics is too long and well known for me to recite all over again here. Suffice it to say that living under chronic financial stress is the American Nightmare that replaced the dream. Now imagine that prices go up by 10%. Because remember, Trump’s tariff rates are 15%+ on all major trading partners. And America imports most of what it consumes. So let’s say that corporations eat 5%, and even tank their own profit margins, which causes a stock market crash, and then “only” raise prices by 10%. How much does that shrink demand? By more than 10%. Because of course when people are already stretched to the limit, they can’t afford it. This is known as the “elasticity of demand,” and in America’s case, it foretells an economy where people already on the brink can’t bear prices rising higher, and so demand shrinks disproportionately more. And what does that do? It causes corporate earnings to shrink even more, which makes stock prices sink further, and then we’re off to the races, because now it’s a vicious circle. That brings up Delusion Number Five. If we win this trade war, we’ll rule the world! Make America Great Again!! Nobody wins trade wars. Nobody. All that the above will do is shrink the world economy. But America will be hurt the most. As I’ve shown you, Americans pay the tariffs, one way or another. But it goes deeper than that still. Because as all the above comes to pass, what happens? The world stops trusting America. Even more so than now. America’s institutions aren’t seen as credible. Its leadership is a joke. Its hostility to the world doesn’t go unnoticed. And as that happens, investment dries up, the dollar continues sinking, American bonds lose their value, and so on. Finance in the end is just a reflection of trust, and what’s happening in America today is the opposite of trust: risk. The world will be hurt, sure, by America suddenly raising all kinds of foolish trade barriers. But nobody will be hurt more than America. Because America isn’t just the world’s largest market, it’s also the world’s largest destination for investment. And if you think the world is going to want to invest in a country which deliberately tanks its own economy, shrivels up its own demand, sows chaos in its own stock and bond markets, and devalues its own currency, think again. Only a very, very foolhardy investor would make that choice. So. Five delusions. What am I trying to teach you here, really? Not just finance. and economics, but also sociology, psychology, and history. America is delusional about all the above at the moment. It’s happened before. Even in recent history. Brexit was built on just such delusions. But economics has laws. They can’t be bent, no matter if your Fuhrer is the New Zarathustra. They obey no iron will. They just are. When a President seduces a nation into buying stocks so much that the markets soar to dot-com level heights…on tariffs…high enough to bankrupt the S&P 500…something is very, very wrong. This is euphoria, mania, and psychosis, all in one. It is delusion at a social scale. I recommend staying far away from it. Talk to your finance guys about it, and if they don’t have anything to say, except giving you a kind of dopey grin and telling you there’s nothing to worry about, and the hairs on the back of your neck stand up at that precise moment? Then, my friend, you are the only one in the room who’s thinking clearly. As always, feel free to reach out if you need help or advice. Lots of love, Umair (and Snowy!) Written by umair haque vampire.
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川普貿易政策對美國的傷害 -- Shannon K. O’Neil
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本文處處使用「綜效」概念批判川普的貿易政策;強調「分工合作」在「供應鏈」和「國防工業」兩者所產生的「加成作用」。請參見此欄、此欄、本欄開欄文、和此文(該欄2025/10/28)。
我們從這篇文章可以進一步了解美國外交和經濟上的「帝國主義」身影,我現在沒有腦力/體力申論,只能點到為止;有興趣的朋友可以沿著以下思路進一步讀這篇分析: 1) 「『軍事-財團』複合體」的本質和運作模式。 2) 「協防」在美國「經濟發展」上所扮演的角色和功能。 The New Supply Chain Insecurity Fortress America Is Not a Safer America Shannon K. O’Neil, November/December 2025 , Published on 10/21/25 In a matter of months, the Trump administration has rewritten the rules of U.S. trade policy. It has imposed blanket tariffs on nearly every country, starting at ten percent and rising as high as 50 percent. Levies on a host of products, such as steel, aluminum, cars, and car parts, have raised these trade barriers even further. At an average effective rate of around 18 percent, U.S. import taxes are now the highest they have been in nearly a century. “China beats you with trade, Russia beats you with war,” U.S. President Donald Trump mused in August, quoting Hungarian Prime Minister Viktor Orban. Protectionism is Trump’s answer to both challenges. He sees the revenue from tariffs as a way to win at the cash register; he sees the boost to the domestic production of military equipment and the minerals, materials, and technology that go into it as a path to dominating on the battlefield. The administration’s levies will likely have some of their desired effects. They will fundamentally change the United States’ position in the world economy, untangling the country, at least in part, from global supply chains. Consumer goods companies will make more of their products in the United States to capture a slice of its consumer market, which is still the largest in the world. Suppliers of steel, aluminum, minerals, and other strategic materials will expand their U.S.-based operations to take advantage of rising domestic prices. But the damage that tariffs will inflict will be far greater than the benefits they bring. Over the last 50 years, the United States’ integration into global supply chains has fueled economic growth. Detaching from these supply chains will raise costs and reduce quality, limiting growth and competitiveness. The U.S. defense industry will not be spared the effects of higher prices, lost suppliers, and dwindling foreign markets. Producing weapons and military equipment—and building new factories—in the United States will become more expensive. U.S. allies, eager to strengthen their own defense industries and mistrustful of trade with the United States, could choose to spend less on American weapons. Worryingly, U.S. companies face these threats to their business models just as Washington, contemplating a future of drone- and AI-driven warfare, needs their innovation more than ever. 表單的底部
There is no replacing the advantages of supply chain cooperation with reliable partners. The more Washington tries to go it alone, the easier it will be for friends and foes alike to prevail over the United States—today in trade and tomorrow, perhaps, in war. CEDING THE ADVANTAGE In an August New York Times op-ed, U.S. Trade Representative Jamieson Greer described the Trump administration’s aim in imposing tariffs and seeking foreign investment deals as no less than to lay “the foundation for a new global trading order.” In the administration’s theory of the case, tariffs will ignite domestic reindustrialization, create jobs, turn trade deficits into surpluses, and reduce U.S. dependence on adversaries for strategic and mainstream goods alike. This, the administration believes, will reverse the trends of manufacturing job losses, rising deficits, and growing dependence that it ascribes to decades of “unfair” liberal trade policies. Early numbers show the tariffs are having effects, but not promising ones. According to the nonprofit Institute for Supply Management’s Purchasing Managers’ Index, U.S. manufacturing has been contracting for the past six months. Jobs in manufacturing have fallen by 78,000 this year. Meanwhile, inflation is ticking up. Both July and August saw spikes, as imported goods, now subject to tariffs, hit shelves with higher price tags. American-made goods have also become more expensive to produce, as manufacturers pay more for foreign inputs; roughly 45 percent of imports are materials used in U.S. production. In response to high prices and general economic uncertainty, spending by low-income consumers has flatlined over the past few months. The U.S. goods trade deficit did shrink from the first to the second quarter of this year, largely because of a downturn in imports, particularly from China. Exports, meanwhile, mostly leveled off, which is likely one of several reasons employment numbers softened. The rest of the world has responded by trading even more. Foreign companies are beginning to reroute their goods and supply chains to bypass the United States. Trade negotiators are traveling not just to Washington but to other capitals, too, in pursuit of new deals. The EU is seeking agreements with India and Indonesia, pushing forward another with the South American trade bloc Mercosur, holding trade talks with China, and considering joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a free-trade agreement signed in 2018 that now includes a dozen countries together representing nearly 15 percent of global GDP. Brazil, China, India, and the United Kingdom are all negotiating new trade accords with a variety of partners. Where this activity will leave the U.S. economy will not be clear for some time. Investment may pick up as tariff rates settle, removing uncertainty, and as Japan, South Korea, and the EU follow through on the pledges included in the trade deals they signed with the Trump administration. Many companies could find the increased prices in a highly protected U.S. market attractive, encouraging them to expand their operations in the United States. Yet tariffs also create significant obstacles to U.S. economic growth. Levies on steel, aluminum, lumber, copper tubing, and other construction materials and machinery increase the startup costs for companies that might consider reshoring manufacturing. These costs make it more expensive for firms to build new factories and assembly lines in the United States and for local governments to expand electric grids to supply them. Such costs could keep some foreign investors away and limit the impact of the money that does arrive. Because the prices of American-made goods will rise, they will become less competitive beyond U.S. shores, where billions of consumers reside. U.S.-based suppliers will also be at a disadvantage. Of the $2 trillion or so in goods that American companies export every year, nearly two-thirds are inputs that feed into global supply chains and products made in other countries. As these goods become more expensive, foreign manufacturers will seek alternatives. Even if few countries retaliate tit for tat to U.S. tariffs and many agree to deals that lower trade barriers for American exporters, the world will remain wary of trade with the United States. Other countries will not wholly abandon the voracious American consumer, whose roughly $20 trillion in annual spending drives some 70 percent of the U.S. economy. But they could choose to treat the U.S. market differently from the way they treat the rest of the world. For years, companies have treated the Chinese market differently, manufacturing goods for Chinese consumers in China while maintaining separate, diversified operations for other markets. They could now follow the same playbook in the United States, supplying U.S. consumers from within but locating production for clients in the rest of the world elsewhere, limiting the economic benefits the United States reaps from protection. The Trump administration’s tariffs exclude the United States from the overall economic boost global supply chains provide. Over the last 50 years, cross-border production has vastly expanded, powering prosperity in emerging and advanced economies even as it widened inequalities in the United States and elsewhere. Global trade in goods grew from $2 trillion in 1980 to $24 trillion today, roughly 55 percent of which represents inputs for making other things. The trade historian Douglas Irwin surveyed nearly a dozen studies and found that the economies that opened up during this period grew much faster than those that did not, in good part because they linked into supply chains. International supply chains supercharge production by providing scale and stimulate innovation by enabling specialization. Even the United States, with its vast, dynamic economy, cannot reproduce those advantages. Unless American companies can buy parts from foreign firms at a reasonable cost and locate some of their operations in other countries, they will struggle to make products as well, as cheaply, and as quickly as competitors abroad that are still deeply connected to global supply chains. GLOBALIZED DEFENSE The U.S. defense industry will not be immune to these effects. Throughout the postwar period, American companies have been the largest exporters of defense equipment, accounting for more than a third of the global market. They are the best-known providers of cutting-edge military technologies such as guided missiles, stealth aircraft, reconnaissance systems, and nuclear-powered vessels. For decades, Europe has bought roughly 40 percent of its military kit from the United States. Israel and Saudi Arabia have turned to the United States for an even greater percentage of their arms purchases. Japan and South Korea rely on American producers for their missile systems, fighter jets, and other military hardware. When a government buys new equipment from a U.S. company, it is also committing to pay that company for maintenance, replacement parts, and system upgrades for the next several years. American defense companies have secured these lucrative deals not just because of the quality and sophistication of their products but also because the U.S. government approves the sales as part of its security alliances and agreements. The U.S. defense industrial base has never had to go it alone. Defense companies and the American military itself have always had global sources, especially in times of war. During World War II, the United States imported significant portions of the nickel, copper, tungsten, manganese, and other minerals and materials that drove its victorious war machine. During the Korean War, Japan-based manufacturers supplied U.S. troops across the Sea of Japan with refurbished tanks, bomber jets, and artillery. In conflict after conflict, U.S. military strength has come from the country’s ability to access and marshal supplies from around the world. The expansion of international supply chains has increased the speed of innovation and lowered the costs of production in the defense industry. Decades of work go into collecting these benefits—building a supply chain is not as simple as signing a contract. Legal agreements ensure compatibility, reliability, and quality. But supply chains for sophisticated defense products typically resemble long-term partnerships, with American companies and foreign firms engaged in joint ventures and shared research and development. Suppliers and manufacturers form strong working relationships as they navigate regulations, security protocols, and geopolitics together. The U.S. government has played a key role in building such supply chains. The Pentagon oversees approval processes for suppliers of crucial components, as it does, for example, in the U.S. defense firm Northrop Grumman’s partnership with Japan’s Mitsubishi Heavy Industries to design hypersonic missile defense systems. Diplomatic agreements and treaties establish joint defense projects, such as the 2021 AUKUS agreement among Australia, the United Kingdom, and the United States, which includes plans to design and manufacture a new class of nuclear-powered attack submarines. Technical agreements that set joint standards and facilitate interoperability and technology sharing enable companies from multiple countries to make parts, components, and systems for one another. After years of the U.S. government constructing such partnerships, American defense companies rely on foreign providers for basic materials and, often, sophisticated components of military equipment. Cross-border sourcing makes the defense industry more resilient. When U.S. companies work with multiple international suppliers, they limit their exposure to problems that may arise in any given geographic location. Concentrated domestic production, meanwhile, creates vulnerability, as the United States has experienced firsthand. When Hurricane Maria shut down factoriesin Puerto Rico in 2017, for instance, the U.S. mainland faced an acute shortage of medical supplies. Manufacturing 155-millimeter artillery shells in just one plant in Scranton, Pennsylvania, led to dangerous gaps in U.S. defenses in 2022, when the U.S. Army raced to supply Ukraine after Russia’s invasion while also replenishing U.S. arsenals at home. (It has since placed orders with multiple sites in the United States and Canada.) The proliferation of dual-use technologies has meant that companies producing crucial defense components are operating on a scale that small-batch manufacturers could never achieve. Today, the same semiconductors power smartphones and missiles, the batteries in laptops and electric cars also drive drones, artificial intelligence used for school assignments also directs uncrewed weapons, and satellites navigate both civilian traffic and troop movements. The companies that produce these goods are massive, their growth enabled by the purchases of everyday customers alongside defense clients. And they make enormous profits from commercial applications—profits that fund the research and development that accelerates defense innovation, which in turn benefits the U.S. Department of Defense. GOING IT ALONE Crafting international supply chains does create economic dependencies on foreign countries, and sometimes those dependencies can be dangerous. Because of this, the United States has a strong case to cut its foes out of supply chains critical to national security. A rival power can weaponize Washington’s reliance on the goods its companies provide. China, which controls a host of critical defense inputs, has done just that. In the trade war with the United States, it has limited exports of gallium, tungsten, germanium, antimony, graphite, and other minerals used to produce drones, bullets, F-35 fighter jets, Tomahawk missiles, and night-vision goggles, as well as exports of rare-earth magnets critical to electric vehicles and advanced weapons systems. Beijing has also banned the sale of components to California-based drone maker Skydio, ostensibly because the company signed a contract with the government of Taiwan but also to undermine an emerging competitor to Chinese firms. But cutting friends out of supply chains, as well, as Trump’s blanket tariffs do, weakens Washington’s ability to project power rather than strengthening it. Tariffs, for one, will make defense production more expensive. Many final products are already made in the United States to meet stringent legal requirements regarding the sourcing of certain specialty components. But these contractors will now have to pay higher local prices for domestically made steel, aluminum, copper, and semiconductors because tariff protections allow U.S. producers to charge more. Tariffs will also make it more difficult to expand domestic industries. Take shipbuilding. Less than one percent of all vessels in the world are manufactured in the United States since it is already more expensive to build there than in China, Japan, or South Korea. Tariffs make investment in this industry even less attractive because U.S. shipyards will have to pay 50 percent more than their global competitors for the tons of steel and aluminum that go into constructing each vessel. For U.S. defense companies to be economically viable, they must be assured of customers. Making weapons and military hardware is highly capital-intensive. The firms producing sophisticated equipment and systems need huge research and development budgets, specialized manufacturing facilities, and advanced machinery. Long production timelines mean that filling an order takes years, and these companies produce only a small number of units. Traditionally, U.S. defense contractors have been able to defray these enormous upfront costs because they have a loyal customer base built into the U.S. alliance structure. In 2024, foreign allies purchased over $300 billion in arms and defense equipment from U.S. makers through U.S. government–approved contracts, compared with roughly $445 billion these companies received from Pentagon contracts. International customers account for roughly ten to 40 percent of total sales for the top U.S. defense contractors, including Lockheed Martin, Northrop Grumman, and RTX. The U.S. defense industrial base has never had to go it alone. But this previously reliable source of demand for American defense products could now be in jeopardy. Trump has long insisted that U.S. allies should depend less on the United States, and his tariff announcements have only reinforced that message. The U.S. president has railed against fellow NATO members for free-riding on American defense spending and demanded that Japan and South Korea pay more to host U.S. troops and bases in their countries. Australia, Japan, South Korea, and NATO allies have announced meaningful increases to their defense budgets, and many of them have committed to spending some of this money on purchases from U.S. firms. But it is not assured that they will all follow through on the latter pledge. Many have ambitions to expand their own defense industrial bases—and have sold increased defense outlays to their publics on the basis that the money will boost domestic industry. Seeing their exports slapped with U.S. tariffs, moreover, feeds their growing hesitancy about relying too much on a volatile, transactional United States. French President Emmanuel Macron, long an advocate of “buy European” practices, has called on EU members to trade U.S.-made Patriots and F-35s for French-Italian SAMP/T missiles and French Rafale fighter jets. Some are now doing so. Denmark recently chose Europe’s models over American ones for its $9 billion air defense system upgrade. Spain has nixed plans to buy American F-35s with its $7 billion earmarked budget and is looking into European alternatives. Purchases using the EU’s new $176 billion defense fund, furthermore, are restricted to European companies and companies from countries that have formal security deals with the EU—a list that does not include the United States. British Prime Minister Keir Starmer, meanwhile, has vowed to seize a “once in a generation” dividend by channeling defense investment into domestic jobs and industrial growth. Japan is intent on boosting domestic producers of hypersonic missiles, drones, and fighter planes with its own spending surge and is negotiating an agreement to share classified information with the EU and a formal defense dialogue to connect Japanese industry with European defense supply chains. And South Korean President Lee Jae-myung has expressed his hope that the defense industry “becomes one of Korea’s future growth engines.” Frustration with American tariff policies among foreign publics may also make it harder for allies to continue spending big on U.S. defense products. A Pew Research Center poll conducted between January and April saw favorable views of the United States plummet by eight to 32 percentage points across 15 of the 24 countries surveyed. The sense of betrayal after Trump announced tariffs has already led to boycotts of U.S. goods in Canada, India, and Europe. With their constituents refusing to buy Kentucky bourbon or Levi’s jeans, governments may redouble their search for alternatives to Patriot and Tomahawk missiles, F-35 fighter jets, and Black Hawk helicopters. There is already evidence that U.S. allies and partners are distancing themselves from the United States. German Chancellor Friedrich Merz has made it a defense priority to “achieve independence” from the United States, and talk in Europe has increasingly focused on the continent’s “strategic autonomy.” India, facing particularly high U.S. tariffs, paused its purchase of American weapons rather than meet Trump’s demand to give up its imports of Russian oil. Brazil, another country whose exports face 50 percent tariffs, declined to join military exercises with the United States in September but has stepped up military representation in its Beijing embassy this year to match that in Washington. Beijing, indeed, has benefited from the world’s discontent with Trump’s hard-nosed tactics. A year ago, China was facing a global backlash for its own coercive trade practices and aggressive diplomacy. Yet in the past few months, officials from Brazil, India, Japan, South Korea, and the European Union, feeling spurned or neglected by Washington, have all taken steps, with varying success, to mend their frayed ties with China. THAT’S WHAT FRIENDS ARE FOR This is a particularly dangerous time for the U.S. defense industry to lose favored access to global suppliers and, potentially, buyers. As the fights taking place on the battlefields of Ukraine and in the shipping lanes of the Red Sea have demonstrated, the future of war is one not of aircraft carriers, tanks, and artillery but of drones, robots, and AI. The United States does not yet produce this equipment domestically in sufficient amounts or have the flexible procurement processes to acquire it quickly. Instead, the country depends on China, its most significant adversary, for the basic material inputs and the physical components of drones, robots, and next-generation radar systems. On the technological side, Washington is locked in a competition for dominance—a competition that it could lose to Beijing. With tariffs raising the costs of production and making investment in U.S. industries less attractive, it will be more difficult for the United States to gain the same edge in the new warfare that it had in the old. American defense companies cannot simply bring their entire supply chains home; even those with government contracts need the scale and profits that international trade enables to make their businesses viable. They will also need access to cutting-edge innovation, much of which comes from abroad. China has already become a peer competitor to the United States in hypersonic weapons, integrated air defense systems, cybertools, and space capabilities. The United States alone cannot match the pace and scale that China has achieved. That will be possible only if U.S. efforts incorporate the innovation and production know-how of allies including Japan, South Korea, and countries in Europe. There is a place for ramping up domestic production to ensure that the United States has the equipment it needs to defend itself and good reason to purge U.S. adversaries from critical defense supply chains. Yet blanket tariffs make those tasks harder, not easier. If Washington were to pivot to targeted tariffs, focusing only on strategic industries and inputs, it would encourage the manufacturing that matters most for national security without incurring unnecessary costs. And by scaling back or eliminating tariffs on countries it trusts, giving “friend shoring” a real chance as part of a wider strategy to revitalize key industries, Washington could reap gains from geographic diversification and access to new markets and innovations. Part of that strategy must involve U.S. subsidies. This will be especially important in industries in which markets have failed, such as the battery industry; Chinese subsidies have built up battery manufacturing capacity to the point that it far outstrips total global demand. Subsidies will also be critical in industries that are vulnerable to manipulation, such as mineral refining and processing. China is so dominant in these fields that it can create global shortages or flood markets to drive foreign companies into bankruptcy. The U.S. government has already found success using subsidies to draw in private investment. Billions of dollars in loans and grants to semiconductor makers in recent years have expanded U.S. production capacity, which will reduce the country’s reliance on manufacturing concentrated in Taiwan. In a deal signed in July with the American rare-earths firm MP Materials, the U.S. government set a price floor for U.S.-mined rare earths, and the company committed to building a factory to produce magnets from them, which should reduce U.S. dependence on China when the plant comes online in 2028. Future outlays should focus on jump-starting vital production and creating commercially viable businesses over the long term. And potential subsidy recipients should not be limited to U.S. companies or U.S.-based operations. Instead, Washington should use subsidies to diversify the suppliers in critical industries and the regions they come from and to boost access to technologies and innovations from friendly countries. Strengthening international supply chains for critical minerals should start with an effort to revive and put real money behind the Minerals Security Partnership, set up in 2022, which brings together more than a dozen U.S. allies and partners to facilitate cross-border minerals projects. Congress should also pass the Critical Minerals Security Act, which would direct the U.S. government to work with allies on the mining, refining, processing, and recycling of vital defense inputs. Likewise, the United States should protect existing agreements with allies, such as AUKUS, to jointly produce weaponry and defense equipment and pursue new deals along similar lines. Opening funding to others does not have to come at the expense of American companies and contractors. Diplomacy is key. Negotiating a formal security agreement with the EU would make U.S. contractors eligible to bid for public contracts offered as part of Europe’s new defense fund. Agreements with other allies could deliver similar opportunities to U.S. defense contractors, and technical accords that ensure interoperability could open the door to U.S. providers securing maintenance contracts with militaries abroad and supplying future platform additions. Building the U.S. defense industrial base and allied defense industrial bases together, so that they complement rather than compete with each other, will not only help the United States and its allies better coordinate their militaries—it will also yield commercial benefits. The United States needs secure supply chains, and for that it needs to encourage cross-border manufacturing with countries it can count on, not blanket tariffs that drive domestic prices up and foreign partners away. Separating the country from global commerce is a path to increased inflation and slowing innovation and growth that will result in U.S. manufacturers struggling to compete for global consumers. Such a path will ultimately leave the United States less wealthy. The security costs of protectionism are just as dire. U.S. defense suppliers will lose many of their current market advantages as foreign contracts unravel and competitors abroad begin to look like safer geopolitical bets. A shrinking American defense industry is not just an economic blow; it also undermines the United States’ ability to field and equip a world-class military. In the Trump administration’s wishful thinking, building a “Fortress America” may seem like a way to protect the country’s wealth and raise its defenses. But in reality, dismissing the United States’ partners degrades its sources of strength.
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基於對等性的全球戰略 – Oren Cass
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這篇文章太長,我對卡斯先生觀點的興趣也不高;所以,我只讀了第1、2兩節和最後一節。我將以這三節的內容做「樣本」,談談美國一般政論學者的思考盲點。 A Grand Strategy of Reciprocity How to Build an Economic and Security Order That Works for America Oren Cass, November/December 2025, Published on October 17, 2025 The United States has pursued two grand strategies in the 80 years since World War II. One was an extraordinary success: the policy of “containment” that guided American economic investments, foreign relations, and military deployments during the Cold War, which led to the defeat and collapse of the Soviet Union and the emergence of the United States as the world’s lone superpower. The same cannot be said, unfortunately, about the strategy adopted at the Cold War’s conclusion: an attempt to leverage superpower status to establish a “liberal world order” that Washington would secure and dominate. That strategy went by names including “enlargement,” as defined by President Bill Clinton’s first national security adviser, Anthony Lake, and “benevolent hegemony,” in the words of the neoconservative thinkers William Kristol and Robert Kagan, writing in these pages. This vision promised an enduring Pax Americana in which no other country could or would challenge U.S. supremacy, all evolved inevitably toward liberal democracy, and the global free market’s warm embrace rendered borders irrelevant while spreading prosperity worldwide. By some measures, the strategy worked. U.S. GDP and stock prices steadily rose. Technology and trade stitched the world closer together. World War III did not start. But a clear-eyed appraisal of the post–Cold War era reveals a less rosy reality. Far from producing a utopia of shared prosperity and stable peace, American strategy in the past three decades has instead yielded a global economic order that allows other countries to exploit Washington’s largess, an ascendant authoritarian adversary in China, and simmering conflicts around the globe in which expectations of American commitment far outstrip the reality of American capacity—all of which have contributed to economic and social decay in the United States. Any grand strategy is, in part, a bet on a particular theory of political economy. The bet on investing to rebuild a bulwark of market democracies whose prosperity would eventually overwhelm Soviet communism was a wise one. The subsequent bet, on the ability of globalization and free markets to render political economy irrelevant, was not. The time has come for a new wager. The best way to create a sustainable trading and security bloc is a strategy of reciprocity: an alliance among countries committed to engaging with each other on comparable terms while jointly excluding others that will not fulfill the same obligations. 表單的頂端
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Demanding reciprocity would counteract the beggar-thy-neighbor policies that have created unsustainable imbalances with U.S. trading partners, curtail Washington’s dependence on adversaries for critical goods, and limit the free-riding that has slowly eroded U.S. alliances and partnerships. By embracing reciprocity, the United States would also be rejecting an asymmetric order featuring a dominant power and its clients in favor of one in which participants all stand on equal footing with equal expectations. This would represent a healthy development in how the nation conceives of itself, moving away from an American empire and back toward an American republic. Perhaps counterintuitively, the relative decline in American power has strengthened Washington’s hand when it comes to negotiating the terms of a new global order. The status quo is predicated on an American commitment to hegemony that precludes the possibility of pulling back. That commitment made sense as long as the United States remained dominant. But owing to the self-enfeeblement of its allies and the ascent of China, the United States can no longer maintain its predominance. And so it seems plausible that a dramatic retrenchment—pulling back from global economic and military engagement and relying chiefly on the strategic depth and sizable market provided by the North American continent—could produce a better outcome than the ongoing descent into late-imperial exhaustion. Simply put, Washington can now consider walking away from the table if the terms of its relationships do not improve. Allies and partners know this and want to avoid that outcome, because the U.S. market and military remain indispensable to their own prosperity and security. Which means that, for the first time in the lives of contemporary policymakers, the United States is in a position to frame its demands around narrow self-interest, back them with credible consequences, and expect them to be taken seriously. The question that will define the next era of American statecraft is, What should those demands be? In his second term, President Donald Trump has made progress toward developing a strategy of reciprocity. He and his administration deserve credit for recognizing the need for change, and they have been persuasive in signaling that they see walking away from the table as preferable to tolerating the status quo. German Chancellor Friedrich Merz has conceded that European countries have been “free-riders,” taking advantage of the United States, and the most recent NATO summit concluded with an unprecedented commitment by members to raise their defense spending from at least 2.0 percent of GDP to at least 3.5 percent. Credibly threatened with tariffs, Canada and Mexico have begun reducing their economic ties with China; Japan, South Korea, Vietnam, and the European Union have all worked toward agreements to reduce their trade imbalances with the United States. But even though Trump defines U.S. interests and weighs costs and benefits differently than did his predecessors, he has not yet translated his “America first” instincts into a coherent vision of a new global settlement. His trade agenda has appeared haphazard, and confronting all countries suddenly, simultaneously, and harshly has needlessly antagonized allies and heightened uncertainty. On China, the administration has oscillated unpredictably, pursuing a sharp decoupling one day and a grand bargain the next. And it has been difficult to discern the logic behind moves such as imposing stiff tariffs on India, purportedly in response to that country’s oil purchases from Russia. To reset relationships and forge new ones on new premises requires communicating the reasons for the change, the shape of the new strategy, the character of American demands, and the consequences for failure to reach agreement. Reciprocity can provide those premises, on terms fair to both the United States and prospective allies. But Washington needs to establish and articulate those premises and terms as clearly as possible. A BAD BET For a brief moment after the defeat of Soviet communism, Americans debated whether they should return to the humble and noninterventionist foreign policy tradition that a bounty of natural resources and the protection of two oceans had enabled in the republic’s early years. But officials and politicians were exhilarated by victory, possessed of an astonishing hubris, and seduced by visions of empire offered by scholars and pundits. The United States, they decided, could and should dominate global affairs indefinitely. The seminal Defense Planning Guidance developed by the George H. W. Bush administration in 1992 called for the United States to “promote increasing respect for international law, limit international violence, and encourage the spread of democratic forms of government and open economic systems,” and to “retain the pre-eminent responsibility for addressing selectively those wrongs which threaten not only our interests, but those of our allies or friends, or which could seriously unsettle international relations.” The following year, Clinton ratified this bipartisan consensus in a speech at the United Nations. “We cannot solve every problem,” he said, “but we must and will serve as a fulcrum for change and a pivot point for peace.” Four years later, in his second inaugural address, Clinton went further, anointing the United States the world’s “indispensable nation.” Within a remarkable 12-month period surrounding that speech, a chorus of prominent thinkers cheered on this new credo. Kristol and Kagan assigned the American people “fundamental interests in a liberal international order, the spread of freedom and democratic governance, an international economic system of free-market capitalism and free trade,” and a “responsibility to lead the world.” The New York Times columnist Thomas Friedman published his observation that “no two countries that both have a McDonald’s have ever fought a war against each other.” And the economist Paul Krugman asserted that “a country serves its own interests by pursuing free trade regardless of what other countries may do.” Embedded in these declarations were three interlocking assumptions. First, that the United States, standing alone as the world’s sole economic and military superpower, would have the ability and will to dictate global events when and where it chose. Second, that all countries of geopolitical significance would move inexorably toward market capitalism and democratic governance and thus would have interests and systems compatible with a U.S.-led liberal world order. And finally, that free markets would automatically generate prosperity, for the United States most of all, and thus the expansion and integration of markets would reinforce the American position. To allies, Washington has said “do this” and “stop that”—but rarely “or else.” As long as those assumptions held, the costs incurred by the United States to preserve the status quo could yield it far larger benefits. Domination of global affairs allowed Washington to push other countries toward economic and political liberalization, which further expanded markets that the United States could then dominate and orient toward its own priorities. Outspending the rest of the world, combined, on defense and tolerating market abuses on the part of other countries—including currency manipulation, industrial subsidies, regulatory barriers, and wage suppression—were small prices to pay, and ones that the United States could easily afford. For a time, these core assumptions seemed to hold. The 1990s began with the triumph of the U.S.-led coalition in the Persian Gulf War. Israel and the Palestinian Liberation Organization signed the Oslo accords, South Africa transitioned from apartheid to democracy, and NATO intervened successfully in the Balkan wars. The North American Free Trade Agreement took effect, the World Trade Organization launched, and the European Union adopted a common currency. At the decade’s end, the United States arrived at the crest of an economic boom, with a federal budget comfortably in surplus, unchallenged in any sphere of global leadership. But in 2000, the Russian Federation elected Vladimir Putin as president, and he has led the country ever since. That October, the United States granted “permanent normal trade relations” to China with the expectation that the embrace would “increase the likelihood of positive change in China and therefore stability throughout Asia,” as Clinton had explained earlier that year at the annual meeting of the World Economic Forum in Davos. “What some call globalization,” elaborated President George W. Bush the following July, “is in fact the triumph of human liberty across national borders.” Two months later, the Twin Towers fell, and the U.S. military plunged into Afghanistan. In the years that followed, systems bearing no resemblance to market democracy gained traction, and countries that adopted them grew stronger, undermining international institutions built to serve liberal states, violating international law with impunity, and making a mockery of the global trading system. Washington failed to build stable democracies in Afghanistan and Iraq, and the invasions of those countries accomplished little besides miring the United States in “forever wars” that cost thousands of American lives and trillions of dollars. Elsewhere, few young democracies consolidated their gains, while countries such as Russia, Turkey, and Venezuela slid further backward into authoritarianism. More than 40 U.S. military bases and some 80,000 American troops in Europe did nothing to deter Russia from invading Georgia in 2008, then Crimea in 2014, then the rest of Ukraine in 2022. The only perceptible effect of these massive deployments was to discourage Washington’s European allies from investing in their own defense. Meanwhile, China chipped away at the military dominance that was the prerequisite for American hegemony. By some estimates, its defense spending is equivalent to that of the United States, and it fields the world’s largest active-duty fighting force and largest naval fleet. China’s industrial power allows it to influence foreign conflicts—for instance, bolstering the war machine that powers Russia’s assault on Ukraine—and would give China an advantage in a lengthy war of attrition. U.S. shipbuilding capacity trails China’s by a factor of 1,000. China’s growing advantages are a symptom of the broader failure of globalization. For the past three decades, the unfettered flow of goods and capital devastated American industry, helped drive up federal deficits, and provided the fuel for the financial meltdown that led to the global financial crisis of 2008 and the Great Recession that followed. The manufacturing sector’s crown jewels, from Intel to Boeing to General Electric, became laggards—overtaken not by new American entrepreneurs but by foreign state-subsidized enterprises. The sector has atrophied so badly that, according to data on productivity published by the U.S. Bureau of Labor Statistics, factories today need more workers than they did a decade ago to produce the same output. Although the U.S. service sector’s rise in relative importance was natural for an advanced economy, the stagnation in manufacturing was not. The abandonment of production, typified by Apple’s “designed in California, made in China” strategy, sent factory jobs overseas first—but the innovation soon followed. In the mid-2000s, the United States was ahead of China on 60 of 64 “frontier technologies” identified by the Australian Strategic Policy Institute. By 2023, China led on 57. In the twenty-first century, American military leadership and economic forbearance neither achieved an “enlargement” of the community of market democracies nor boosted American security and prosperity. It merely consumed the physical, financial, and social capital that the country had painstakingly accumulated. For global superpowers as much as for families, it turns out, one generation builds the wealth, the second enjoys it, and the third destroys it or sees it squandered. NO MORE FREE RIDES The hallmark of U.S. strategy during hegemony was the unconditionality of its vision, providing benefits to other countries regardless of how they exploited the arrangement. When NATO allies refused to meet their defense spending commitments, the United States might cajole, but its own commitment to defending every NATO country from any possible attack remained rock solid. If China manipulated its currency, subsidized its national champions, stole intellectual property, and denied U.S. firms access to its market, Washington might complain, but the American market would remain open to Chinese companies. When it came to its allies and partners, the United States would say “do this” and “stop that”—but it rarely said “or else.” Over time, what developed among the expert class in Washington was a belief that open markets and alliances were ends unto themselves, so valuable that they were worth pursuing at any price, regardless of how other countries behaved. That belief was unfounded even when the United States was the predominant power; in the post-hegemony world, it is unmoored from reality. The country needs a new path. One alternative would be retrenchment: taking advantage of the strategic depth afforded by geography to build a “Fortress America” with only Canada and Mexico as close partners. This would be a dramatic transformation but an entirely plausible one, and preferable to a status quo in which the United States continues to absorb the costs of attempting to preserve hegemony while enjoying none of the benefits that depend on preserving it. But that would be far from ideal: the country would lose the capacity to influence events around the world in situations that involved critical U.S. interests. Retrenchment would also shrink the scale of the broad open market in which American businesses innovate and grow. The expert class came to see open markets and alliances as ends unto themselves. At the same time, although the days of incurring costs in pursuit of benevolent hegemony are over, it would also be a mistake for the United States to pursue a nakedly coercive empire that leverages its economic and military power to exploit putative allies. Doing so would corrode the country’s democratic republic by elevating the interests of elites over those of ordinary citizens and would corrupt the country’s ethos of liberal governance and self-determination. It would also trigger resentments that would make U.S. alliances less stable and conflicts within them more likely. Instead of pursuing either of those extremes, the United States should pursue reciprocity, focused on a set of commitments that allies must make to each other for the alliance to function well. Going forward, the question Washington should pose to any ally or potential partner is this: If each member were behaving the way you are, would the alliance be a strong one benefiting all members, or would it collapse? On this basis, the United States should make three core demands of any prospective participant in a U.S.-led trading and security bloc. First, Washington should insist that its allies and partners are prepared to take primary responsibility for their own security. A country that does not even attempt to defend itself brings a security deficit to a coalition and acts as a drain on the collective defense, imposing obligations on others that it cannot reciprocate. Consider Germany, which has relied on the United States for security in its region since the end of World War II. “We cannot substitute or replace what the Americans still do for us,” Merz conceded in May. The same cannot be said about what, if anything, the Germans still do for the United States. The basing of so many American troops on German soil, at American expense, serves the Germans, the rest of Europe, and the dreams of empire that some in Washington still harbor. But it does not serve the interests of the typical American. The U.S.-German relationship is not an alliance in any meaningful sense of the term: in reality, Germany is a client and the United States is a patron, although one that gets little in exchange for its patronage. The bases in Germany should be German bases, hosting German troops paid by the German government to maintain comparable capabilities. Conversely, a country that can take responsibility for deterring and defeating common foes in its own region while contributing intelligence and technology to its partners is invaluable. In June, the Israeli air campaign against Iran provided a concrete illustration. Israel hoped the United States would join, but had little leverage to make it do so. U.S. leaders were able to assess their options and decide which best advanced American interests. When Trump opted to take part, American B-2s were able to follow a path already cleared and strike targets already softened by Israeli forces. Iran found it unwise to attempt more than a symbolic retaliation. A strategy of reciprocity would call for ending direct U.S. aid to Israel; it is wholly unnecessary given Israel’s wealth and strategic position, and it does not deliver a clear benefit to the United States. But Washington should gladly continue selling arms to Israel, and even providing financing for those sales, as it should for other allies that take primary responsibility for their own regions. Israel generally allocates more than five percent of its GDP to defense spending even when not engaged in active conflicts, and it mandates conscription for a majority of citizens. Israel does these things not to secure Washington’s blessing but to secure itself. Imagine what the United States would save, and how much more secure from Russian and Chinese aggression the world would be, if countries such as Germany and Japan were equally determined to deter their regional adversaries. IN OR OUT? If it pursued reciprocity, Washington would also make a second demand: balanced trade. Economists have long understood that the benefits of free trade are undermined if countries adopt beggar-thy-neighbor policies that shift productive capacity to themselves at the expense of partners. In its efforts to achieve benevolent hegemony, the United States tolerated being beggared by its neighbors. For example, major trading partners such as Germany, Japan, and South Korea have pursued aggressive industrial policies and export-led growth strategies that shifted productive capacity from the United States and created persistent trade imbalances. The United States tolerated this state of affairs partly for the sake of securing the loyalty of its allies and partners, and partly out of a mistaken belief that making things did not matter anymore and offshoring American industry would lead to cheaper goods for American consumers and better jobs in high-value service industries. Those tradeoffs have become untenable, as a weakened manufacturing sector has frayed the social fabric by eliminating millions of good blue-collar jobs, shattered the foundations of local economies across broad swaths of the country, reduced investment and innovation, imperiled supply chains, and eliminated the strategic depth afforded by a robust industrial base. The United States should be a strong advocate for a large and open market as a core feature of an alliance, but it must insist that all participants foster the mutual benefit that a well-functioning trading system provides. In practice, this requires that each country commit to maintaining balance in its own trade, buying as much from others in the bloc as it sells to them. In the global trading system today, the United States operates as the consumer of last resort, absorbing surpluses from all who wish to run them. No other country can match China’s abuse of the global trading system, but Germany, Japan, and South Korea all rely on export-led growth and expect the U.S. economy to absorb their massive export surpluses, too, to the benefit of their producers and the detriment of American competitors. Although a bilateral imbalance between any two countries is not necessarily problematic, an alliance cannot tolerate members pursuing large overall surpluses, which by definition necessitate others to run large deficits. Reciprocity would require using tariffs, quotas, or other regulatory barriers to discipline any country that is creating a structural imbalance. Countries running persistent surpluses could also commit to voluntary restraints on their own exports and could encourage their companies to build capacity in allied markets, as Japan did in the 1980s after the Reagan administration objected to Japanese automakers pouring cheaper cars into the American market. Countries that refused to play by the rules and pursue balance would be pushed out of the common market and face a high, uniform tariff from all members of the bloc. In an era when the United States guaranteed open access to its market regardless of whether participants followed the rules, other countries quite rationally took advantage. If the United States instead conditioned access to its market on trading relationships that are balanced and thus mutually beneficial, countries will find it in their interest to adjust accordingly. The shock waves triggered by the Trump administration’s tariffs are educating both economists and U.S. allies on this point. Canada, Japan, Mexico, South Korea, the United Kingdom, and the European Union have all altered their own trade policies—lowering barriers for U.S. exporters and raising barriers for China’s, in various combinations—and some have also made large commitments to invest in expanding U.S. capacity. CONSCIOUS UNCOUPLING The third demand of a reciprocity strategy is simple: “China out.” The strategy of benevolent hegemony atop a liberal world order assumed the United States would remain the lone superpower, all countries would move toward market democracy, and free trade among them would foster prosperity for all. But China didn’t follow the script. How would U.S. leaders in 1997 react if a time traveler could go back and tell them that China—whose GDP per capita was then lower than that of the Republic of the Congo—would remain an authoritarian country with a state-run economy yet rise to match the United States geopolitically and outcompete it in industrial power? Presumably, they would laugh. But anyone who believed it would surely abandon the blind embrace of China on the spot. The United States, after all, had triumphed in a Cold War during which not even the most orthodox free-market libertarians advocated that the United States pursue trade with the Soviet Union or otherwise entangle the American and Soviet economic and political systems. U.S. producers will not be able to enjoy the benefits of free trade if they are forced to compete against state-subsidized Chinese competitors in the Japanese market, or face imports from Malaysia into the U.S. market that rely on Chinese materials and components sold below cost. Thus, other countries’ access to the American market must be conditioned on their willingness to exclude China. The requirement of balanced trade would itself push countries in this direction, as many are discovering in the wake of the escalating U.S.-Chinese tariff war. The American refusal to continue absorbing China’s surplus has led to import surges into Europe, for instance, creating enormous headaches for leaders there. With the United States maintaining an unconditionally open market, Mexico might want to welcome enormous investment from BYD, the Chinese electric vehicle manufacturer, in factories that would then export cars into the United States. But if Mexico cannot run an enormous trade surplus with the United States, the proposition loses its appeal. The China challenge goes far beyond trade imbalances, of course. As Chinese leader Xi Jinping shuts off the global supply of rare-earth magnets, the world is seeing the cost of letting the Chinese Communist Party manipulate and corner vital strategic markets. China makes investments abroad to usurp critical technologies and exercises political leverage over investors in the Chinese market. Governments and corporations will repeatedly see advantage in accepting what China offers, even as the cumulative effect of those bargains weakens both. If Washington pursued a strategy of reciprocity, the security of the United States and its allies and partners, and the freedom of the open market they would share, would depend on holding all participants accountable for disavowing that course. Investment flows likewise require decoupling. The United States and its allies and partners should prohibit inbound investment from China (including foreign direct investment that results in China-based firms operating within their borders) and also prohibit their own citizens and firms from holding assets or making investments within China’s borders. Technology ecosystems will also need to diverge, especially as the United States leads efforts to restrict China’s access to cutting-edge artificial intelligence chips and chip-making equipment. On all fronts, the principle must be that one can do business in the Chinese sphere or the American one, but not both. After decades during which Washington entangled the U.S. and Chinese economies, abandoned expertise and neglected to invest in domestic manufacturing, and accepted dependence on Chinese supply chains, the process of decoupling will impose real costs on the United States. In the short run, some consumer products will become more expensive. Some businesses will suffer from the loss of suppliers or customers. Reindustrialization will require substantial new investment, which implies some reductions in consumption. But these results are best understood as the price of losing the bet on globalization. Climbing back out of that hole was always going to be expensive. The longer that policymakers refuse to acknowledge reality and insist on doubling down on the failed status quo, the more expensive it will become. Conversely, paying those costs now represents an investment in reindustrialization that will pay enormous dividends for decades. RECIPROCITY TO THE RESCUE The United States retains considerable leverage to redefine its role in the world and shape a new U.S.-led alliance system accordingly. Other countries will sulk when they realize that the old deal is no longer available. But if Washington can make clear that the options are a new alliance or no alliance, other market democracies will rationally accept the offer. The deal would be a fair one. The United States would hold other countries only to the same conditions to which it would expect to be held. Obviously, it would remain a heavy spender on its own defense and the common defense; it would not expect other countries to pay the full cost. In seeking balanced trade, it would be asking others to meet it in the middle, not to accept a role reversal in which American producers get to dominate global markets. These new American demands would disrupt the status quo and impose short-term costs on allies and partners. But they, too, would ultimately benefit. Those in Asia surely wish they could credibly defend Taiwan without wondering whether the United States would truly do so if push came to shove. Those in Europe surely wish they could have credibly warned Putin away from invading Ukraine. In Germany and Japan, especially, export-led growth models appear to have run their course and have given way to stagnation. Both countries would do well to turn toward strategies that boost domestic consumption. And while the lure of cheap Chinese goods and capital has repeatedly proved irresistible in the short run, all are aware of the long-term risks. Any market democracy should be excited to accept a partnership on those terms over the alternative of falling into a Chinese sphere of influence, and the United States can afford to hold firm on the terms. The idea of spheres of influence offends liberal internationalist sensibilities. “During the cold war,” The Economist argued in July, “American- and Soviet-led blocs amounted to spheres of influence. After the USSR fell, both Democratic and Republican administrations repudiated such spheres as deplorable artefacts of the past, calling instead for a liberal world order, open to all.” That is true as a descriptive matter, but it only underscores the wishful thinking that underpinned the repudiation. What happens to a liberal world order “open to all” when some accept the invitation to join but not the terms of membership? They can be welcomed anyway, leading to a world order that is far from liberal, or they can be excluded, preserving the prospects for a liberal order that excludes some of the world. The former has been tried, and it failed. The latter, by insisting on reciprocity and accepting spheres as inevitable in a world of competing and incompatible economic and political systems, gives the United States a much better chance of achieving its goals and advancing its values. Reciprocity holds the promise of improved economic prospects, reduced foreign commitments, and a return to the politics of a republic focused foremost on the interests of its own citizens. But adopting such a strategy will require American leaders—and ordinary Americans—to accept a more limited role for their country on the world stage. Patriotism demands realistic assessments of abilities and interests, not the outlandish embrace of goals the country has no power to achieve. The gambler who responds to frustrating losses by placing bigger and riskier bets is said to be “on tilt.” In the United States, too many analysts are still assessing the hypothetical benefits of a hyperpower status that does not exist; too many politicians are still giving speeches about their affection for various forms of imagined empire. With a humbler and more realistic strategy of reciprocity, Washington would finally be placing a bet that the United States can win. Subscribe to Foreign Affairs This Week Our editors’ top picks, delivered free to your inbox every Friday. Sign Up * Note that when you provide your email address, the Foreign Affairs Privacy Policy and Terms of Use will apply to your newsletter subscription.
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