The geopolitical effects of an isolated America: From hegemon to outsider?

Geopolitical analysis - Editorial Staff
English Section / 9 aprilie

The geopolitical effects of an isolated America: From hegemon to outsider?

Versiunea în limba română

As the Trump 2.0 Administration continues to close international channels of collaboration, impose unilateral tariffs and withdraw the US from global agreements, a major question looms over the future of the American role in the world: is the US still the leader of the global order or is it becoming an isolated actor in a multipolar geopolitical landscape?

The answer is no longer just a matter of perception. Global alliances are rapidly reconfiguring, and the dominance of the US dollar is beginning to be challenged by alternative initiatives. The effects of isolation are not limited to the present - they are preparing the ground for the systematic marginalization of America as an economic and normative power.

1. Reconfiguring global alliances

The international reaction to US protectionist policies has not been limited to specific dissatisfactions. Major states and regional blocs are adapting their long-term strategies, in the context of the American withdrawal from the role of global guarantor of economic and political cooperation.

- The European Union relaunched the strategic dialogue with China in April 2025, through an expanded partnership in the field of green technology, digital trade and energy infrastructure (Politico Europe).

- The BRICS group (Brazil, Russia, India, China, South Africa) announced advanced plans for its own international payments system, aimed at reducing dependence on the US dollar.

2. The crisis of monetary hegemony: the end of the dollar's dominance?

The dollar's position as a global reserve currency is one of the pillars of American power. But in the absence of a coherent monetary and digital policy, alternatives are beginning to take shape:

- China is expanding the use of the digital yuan (e-CNY) in Asia and Africa, including in oil trade;

- India is testing e-Rupay as a means of exchange in the BRICS network;

- The EU is running pilot programs to launch a digital euro, with applicability in global B2B trade.

In contrast, the Federal Reserve's "Digital Dollar" project was frozen by the Trump Administration, being classified as "a federalist surveillance experiment". Thus, the US is limiting its own chances to dictate the rules of the new digital financial system.

3. Loss of initiative in technology and infrastructure

- The Trilateral Technology Consortium (China, South Korea, Germany) has taken the lead in setting new standards for AI, green batteries and 6G.

- The "Digital Silk Road", extended from China to Africa and Eastern Europe, offers non-American infrastructure and software on a continental scale.

- The US recently refused to participate in the OECD negotiations on global standards for cloud and ethical AI and did not sign the Paris Summit declaration where these topics were discussed (Financial Times, April 2025).

The US - a retreating power or a strategic choice?

Whether the result of a deliberate nationalist retreat strategy or a long-term governance error, US isolation has systemic effects. The loss of influence in alliances, the weakening of the dollar as an economic pivot and the exit from global technology initiatives foreshadow a new world order without a clear leader - and America seems to be excluding itself from its construction.

In a world where power is shifting from traditional centers to emergent structures, non-participation is tantamount to irrelevance.

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