Destroying America’s Brand: Losing the world’s trust, and a lot of money too

Source: Paul Krugman (Substack)

March 17, 2025

And one of Carney’s first policy moves as PM was to order a review of Canada’s plan to buy a substantial number of U.S.-made F-35 fighter jets. This means that Canada is joining European nations that are similarly reconsidering their dependence on U.S. weapons.

And this observation got me thinking. How much economic damage will America suffer because it has become a rogue nation? Of course, there’s much more than money at stake here. Still, becoming a nation that can’t be trusted to honor agreements or follow the rule of law has to have monetary as well as political and diplomatic consequences. How big are these monetary consequences?

Well, I’ve been exploring the available data, and U.S. exposure to foreign revulsion looks quite large.

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