Allies step back from US as default partner across assets and defence

The US is losing its status as the “default choice” for allied governments that have spent decades keeping their money in the country, purchasing weapons, and sending their students to American universities.

American news website Axios emphasises that even small steps away from this Washington-centred balance could harm the advantages that have long sustained US economic power.

Steps taken by European countries to repatriate their financial reserves rank among the concrete signs of this trend.

The Netherlands withdrew approximately 86 tonnes of gold from the US and Canada last week, describing the move as a precaution against “extreme risks”.

France relocated the entirety of its gold reserves in New York back home, while Germany announced its intention to take a similar step.

Amid market volatility, Norway’s sovereign wealth fund announced plans to reduce its holdings of US Treasury bonds.

A similar picture draws attention in the defence industry. According to information reported by Reuters, Europe is seeking to reduce its dependence on the US and is purchasing more military equipment from manufacturers within the continent.

In addition, the European Union (EU) shared plans last summer to develop new strategies for cloud computing services to limit dependence on American technology companies.

A noticeable decline is also visible in the interest of foreign students and visitors in the US. Axios reported that applications by foreign students to American universities dropped by 10% during the latest application cycle.

The report linked this decrease to tightened rules on student visas and broader immigration policies implemented by the administration of US President Donald Trump. At the same time, travel to the US fell by 5.5% in 2025, marking the first decline since the COVID-19 pandemic.

According to an analysis published by Foreign Affairs magazine in June, Trump’s return to the White House prompted European countries to reassess their security architecture and accelerated rearmament on the continent.

With Trump taking office, relations between Washington and its European allies grew noticeably strained. Washington repeatedly demanded that European countries increase their defence spending.

Trump also criticised NATO allies on the grounds that they did not provide sufficient support to the US during the war with Iran, and threatened to review Washington’s role in the alliance.

In light of these developments, calls in Europe to strengthen self-defence and reduce dependence on Washington became more frequent.

In a report published in June titled “Defending Europe, Deterring Russia”, the EU Institute for Security Studies called on continental nations to assume greater responsibility within NATO.

The report stressed that military spending must be increased, arms and ammunition production accelerated, joint procurement expanded, and the domestic defence industry developed.

The authors of the study noted that Europe can no longer rely on the previous level of military support from the US.