US Allies Unite Against China, but Trump's Trade Wars Threaten Allied Scale

The US needs to assemble an 'allied scale' of economic and industrial might to counter China's growing influence, according to experts. The idea is for the US and its key allies to pool their resources and capabilities to create a formidable force against China.

The concept of allied scale was first proposed by Rush Doshi and Kurt Campbell, two former Biden administration advisers. They argue that if the US works together with its closest allies, it can command more than 50% of global manufacturing, dwarfing China's share.

However, President Trump's recent actions have undermined this strategy. His trade war with Canada is threatening to unravel the North American trading bloc, which accounts for almost 30% of the global economy. This could lead to a lose-lose outcome for both the US and Canada, as Canadian consumers may turn to cheaper Chinese cars.

Chad Bown, an economist at the Peterson Institute for International Economics, warns that if the US imposes tariffs on Canadian-assembled cars, it will destroy the Canadian industry. In this scenario, Canada would likely import cars from China, while Detroit would lose a major customer.