Kathmandu— The world order is undergoing a significant transformation marked not just by the United States’ disregard for multilateral institutions under recent administrations, but by its diminishing ability to enforce rules on the international stage. This decline has prompted responses from nations like Brazil, which recently faced tariffs imposed by the US over its financial technology, and is driving a broader shift toward alternative forms of cooperation as countries seek to protect their sovereignty and economic interests. While the US once shaped global norms, it now struggles to adapt them to its own strategic goals, creating space for other actors – notably China and Russia – to challenge American hegemony.

Economic Warfare Redefined

The long-standing dominance of the US dollar in international finance is being challenged as nations targeted by American sanctions and tariffs increasingly pursue strategies to reduce their reliance on it. Countries like Russia, Iran, and Venezuela are actively seeking alternative currencies – particularly the yuan – for trade settlements. This trend reflects a broader pattern where states subjected to economic coercion from Washington are developing ‘economic counter-weapons’ of their own, including reciprocal tariffs and even physical barriers to trade.

Challenges to Freedom of the Seas

For decades, the United States has touted its commitment to freedom of the seas as a global public good while simultaneously exercising control over international waterways. However, recent actions by Iran – notably its attempts to regulate passage through the Strait of Hormuz – challenge this principle and highlight the weakening of US hegemony. The failure of the US to effectively uphold freedom of navigation in key chokepoints signals a broader erosion of its ability to enforce international norms.

The Rise of Middle Power Diplomacy

As the US’s influence diminishes, middle powers are seeking opportunities to exert greater relative influence through collective endeavors and diplomatic innovation. Canadian Prime Minister Mark Carney has called for these nations to ‘build a new order,’ while Brazil, under President Lula da Silva, is positioning itself as an international mediator, offering to facilitate peace talks between Ukraine and Russia, and Venezuela and the United States. Despite skepticism from US officials like Elbridge Colby, who dismisses the idea of coherent alignment among middle powers, these nations are increasingly compelled to forge new diplomatic pathways.

Multilateralism’s Uncertain Future

The decline of US hegemony is leading to a loss of political currency for traditional multilateral institutions like the United Nations. While these organizations will likely continue to serve as forums for appealing against imperial impositions, great-power dominance is expected to engender more direct and coercive responses. However, this doesn’t necessarily signal the end of multilateralism; rather, it suggests the emergence of new channels for international cooperation based on shared interests and regional formations.

The future of global order remains uncertain, but the current shifts indicate a move away from US-led hegemony toward a more multipolar world where middle powers play an increasingly important role in shaping international cooperation.

(With inputs from Jacobin)

Originally published on abcnews.com.np.