ALI Perspective

With a Little Help from Our Friends

To quote the Beatles, America does better with help from our friends. Having strong allies is good for America- so good that it supports over 25 million jobs[1] (including Canada, Mexico, EU, UK, Japan and Australia), while growing our middle class and enhancing our security. Yet, over the past 18 months, the U.S. government has frayed and weakened our alliances and partnerships, with profound and harmful consequences.

Since January 2025, the use of across-the-board tariffs against allies and friends has resulted in an affordability crisis. The underlying assumption behind the tariffs—that we should be manufacturing most products at home has resulted in an affordability crisis for the middle class.

While there are certain key strategic products that should be manufactured in the domestically, most manufacturing relies on integrated supply chains which create more jobs and cheaper prices.

Strained alliances impact U.S. workers by:

-    Lowering investment in the U.S.-- most foreign direct investment in the U.S. is from allies Almost 5 million U.S. workers are employed by EU, UK and Japanese companies in the U.S.[2] When they are faced with tariffs or uncertainty, they shift investment elsewhere.

-    Fewer export opportunities-- Canada, Mexico, the European Union, Japan, Australia, and the United Kingdom together account for well over half of U.S. exports. Strained alliances have led to tariff retaliation or to countries diversifying away from the U.S., all of which reduces jobs for farmers and manufacturers who rely on exports.

An approach based on cooperation, rather than coercion, will yield greater benefits for the U.S. and its workers. While there are exceptions where national security demands that products be produced domestically, the majority of the time, jobs and affordability depend on strong and integrated allied and partner relationships. Relying on our friends makes us better.

[1] Direct Investment by Country and Industry, 2024 | U.S. Bureau of Economic Analysis (BEA)

[2] Jobs Supported by Exports Home Page

Coming Up

Future of Transatlantic Relations

Netherlands Amb. Tazelaar

Lithuania Amb.Varvuolis

Rep. Brendan Boyle (PA-2)

Rep. Val Hoyle (OR-4)

In late July, ALI will convene with our premier partners, Ambassadors and members of Congress to discuss the Future of Transatlantic Relations.

ICYMI

ALI Conversation: American Resilience in a Fragmented World

Sen. Andy Kim (NJ)

Last week, the American Leadership Initiative had the distinct privilege of hosting Senator Andy Kim (D-NJ) for a robust, candid conversation on how we move America from this moment of anxiety to one of genuine opportunity. In a time when too many middle-class families feel squeezed by rising costs, uncertain supply chains, and a sense that the system isn’t working for them, Senator Kim offered something rare and valuable: a clear, principled framework built around resilience.

Senator Kim’s core message was that resilience must become both a domestic and international national project. It starts with confronting the supply-chain vulnerabilities that have exposed real risks to our economy and security.

ALI is working to advance exactly this kind of integrated, resilience-focused agenda through our Revitalize America project and our convenings. Senator Kim reinforced our conviction that America’s strength abroad begins with a strong, stable, and growing middle class at home.

ALI in the News

Inside U.S. Trade Quotes ALI

“We are in a new reality where tariffs will continue to be part of U.S. economic statecraft. With that background, a Responsible Trade and Tariff Agenda must be one that is stable, rule-based and predictable, and where we seek to work with, not against, allies and partners.” The American Leadership Initiative, Washington, DC-based center-left analysts, saying the administration should work with Congress to develop a “tariff regime and trade agreements that are legally justified, advance American economic and national security, and most importantly, reduce the burden on business, workers, and families.”

ALI Launches Substack

ALI’s has launched our Substack, a place where bold ideas for American global leadership take shape. We publish sharp, timely takes on trade, technology, economic security, and foreign policy--with a focus on how the U.S. can compete, lead, while delivering at home. With diverse voices and practical thinking, ALI is helping drive the conversation forward.

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"The nation that leads in AI will dominate the 21st century, and AI leadership runs through data centers. But while data center investment & power-grid permitting reform are critically necessary, they’re not sufficient. Beyond encouraging AI innovation and investment, we also must address public safety, prioritize inclusive growth and give more citizens the tools they need to participate in the revolution."