US allies are increasingly deepening their economic and defense collaborations in response to shifting American foreign policy under recent administrations. Countries traditionally aligned with Washington are investing more in joint military production and supply chain integration to ensure strategic autonomy. This trend, observed by Bloomberg Economics, reflects a broader effort to maintain security readiness while adapting to unpredictable diplomatic signals from the United States. Defense partnerships are now serving as a foundation for broader industrial and technological cooperation, including in aerospace and cybersecurity. These developments are not driven by hostility but by a pragmatic reassessment of global alliances. As geopolitical uncertainties persist, nations are prioritizing self-reliance without severing transatlantic or Indo-Pacific ties. The evolution of these defense-driven economic networks highlights a new phase in international security economics.
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Pressure From Trump Stokes US Allies’ Economic Ties — via Defense
I’m Chris Anstey, an economics editor in Boston, and today we’re looking at how US friends and allies are boosting ties through defense production. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here. n nTrump has done much to rile US allies since taking office in January, from slapping tariffs on their imports to creating doubts about American pledges of defense to criticism, in some cases, of their politics.