Think Tank Survey: Trust in Trump and the US Slips, Widening Cracks in Global OrderA · FULL TRANSLATION
- JETRO cites a think-tank survey showing falling international ratings of President Trump and trust in the US
- It reflects erosion of US leadership and credibility under current policy
- Lower trust may affect the dollar, trade talks and alliance stability
- For Japan, wavering US trust adds diplomatic and economic uncertainty
- International trust is a long-run backdrop for FX and asset allocation
When the world starts to discount the US, it is not only politics that suffers but your asset allocation too. A think-tank survey cited by JETRO shows falling international ratings of President Trump and overall trust in the US, a seemingly political story that connects to currencies and capital flows.
Trust is the invisible currency of global order. As trust in the US falls, effects spread along three lines: the dollar's reserve and safe-haven status, the predictability of trade talks, and alliance stability. For Japan, caught between the US and China, wavering trust adds uncertainty. As American exceptionalism is questioned, capital reprices relative risk, a backdrop you cannot ignore when positioning in the yen and Japanese equities.
According to a think-tank survey cited by JETRO, international ratings of US President Trump and overall trust in the United States have declined, reflecting some erosion of US leadership and credibility under current policy. Changing trust in the US may affect the dollar's status, the predictability of trade negotiations, and alliance stability, adding diplomatic and economic uncertainty for countries balancing between the US and China. Details follow the original release.