“It’s like the countries don’t trust the U.S.,” said Daniel Tannebaum, a partner in Oliver Wyman’s finance and risk practice who served at the Treasury Department as the Office of Foreign Assets Control compliance coordinator for the Federal Reserve Bank of New York. “I do think that there is a fear factor.”
That fear factor is also creating blowback for American companies that are trying to do business abroad.
Mr. Tannebaum, who is a partner in Oliver Wyman’s risk and public policy practice, said that the aggressive use of tariffs and export controls by the United States has made European countries and companies wary of adopting American technology for sensitive industries such as artificial intelligence. They worry that if they are dependent on the United States for such infrastructure it could be used against them if Washington decides to ban or disable the technology, as it has done during disputes with China and Russia.
All of this has contributed to an erosion of America’s status as a safe haven.
