U.S. foreign policy imbalances deepen as defence spending rises and alliances weaken

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US foreign policy imbalances

Highlights

The Trump administration seeks a nearly $1.5tn defence budget while proposing cuts exceeding 80 per cent to the state department and foreign aid.
U.S. federal debt surpasses $40tn in 2024, marking the highest share of GDP since World War II amid persistent annual deficits post-9/11.
Alliance strains intensify as U.S. imposes tariffs, pressures NATO partners, and acts unilaterally in regions like Iran and Ukraine, reducing allied trust.

Post-9/11 policy shifts reshape U.S. statecraft

As reported by Financial Times, the September 11 attacks remain the turning point from which modern U.S. foreign policy is taking shape, with presidential war powers expanding while diplomatic capacity is eroding.

Congress passed the 2001 Authorization for Use of Military Force, or AUMF, days after the attacks to target those responsible and those who harboured them. Although Osama bin Laden is killed and other perpetrators are killed or captured, the authorisation is never rescinded, allowing every president since, except in the case of the Iraq war, to rely on it for military actions ranging from surveillance and detention to drone strikes beyond Afghanistan and Iraq.

The article argues that the balance between force and diplomacy is also shifting sharply. In 2001, the U.S. spent more than 13 dollars on defence for every dollar devoted to the state department and foreign aid, and that gap is widening further under the second Trump administration, which is seeking a defence budget of nearly $1.5tn while proposing cuts of more than 80 per cent to the state department and foreign aid budgets and dismantling USAID.

Debt burdens and alliance strains widen

The fiscal consequences are also mounting. After a brief period of budget surpluses that began in 1997, the U.S. returns to large deficits after 9/11 and continues to run them every year, with debt this year crossing $40tn, the highest share of the economy since the end of the second world war.

The piece also describes a sustained weakening of allied trust. Nato invokes Article 5 for the first time after 9/11 in support of the U.S., and European and Canadian forces fight alongside Americans in Afghanistan, but later disputes over Iraq, defence spending and more recent U.S. actions deepen the strain.

Despite increased defence spending by Nato members, allies are now facing tariffs, pressure on Denmark over Greenland and reduced U.S. backing for Ukraine, according to the text. It adds that the lack of consultation with partners before recent action in Iran reinforces the view that Washington is acting alone in an unpopular and costly Middle East war.

The result, the article says, is that younger Americans have grown up without seeing a functioning version of the older model, one marked by congressional war oversight, balanced budgets, a well-funded diplomatic corps and stronger alliance management.

Our earlier article on uncertainty over U.S. commitment to NATO examined how President Trump’s conditional rhetoric on Article 5 and allied defence spending has intensified European doubts about Washington’s security guarantees. It also highlighted concerns that U.S. resource strains from the Iran conflict and potential force adjustments in Europe, alongside a rise in Russia-linked sabotage and drone incidents, could weaken deterrence at a moment of heightened risk.

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