The US President moves to dismantle the foreign aid agency, raising concerns of a global power shift

Donald Trump’s administration has moved to dismantle USAID, slashing its workforce from 10,000 to fewer than 300 and freezing its funding, a decision met with alarm from US allies. UK Foreign Secretary David Lammy called the move a “strategic mistake,” warning that China and Russia could fill the void left by the US retreat from global aid efforts.

“Development remains a very important soft power tool,” Lammy stated, arguing that USAID’s withdrawal would weaken American influence and embolden rivals. Trump dismissed the criticism, calling the agency “fraud” and posting on Truth Social, “Close it down!”

Geopolitical experts fear the fallout could be immense. USAID-funded research has been crucial in tracking China’s overseas influence, particularly its debt-driven Belt and Road Initiative. Cutting off funding to organisations conducting this work could lead to a complete information blackout, analysts told Nikkei Asia.

The decision has been celebrated by authoritarian regimes in Russia, Hungary, and El Salvador, where leaders have long seen USAID’s presence as a threat. Samantha Power, USAID’s former administrator, warned that Trump’s move hands Beijing a golden opportunity to expand its global reach, calling the agency “the ground game in US foreign policy.”

The effects are already being felt in Southeast Asia, where US credibility is eroding. Nikkei Asia reports that critical programs—including landmine removal in Vietnam and medical aid across Asia—are now at risk. A recent survey found that most Southeast Asian nations now favour China over the US if forced to choose between them, a drastic shift in regional alliances.

As Trump’s “America First” agenda isolates Washington, the real winners may be Xi Jinping and Vladimir Putin, whose governments stand ready to fill the leadership vacuum left by America’s retreat.

POLITICS HOME

Donald Trump’s pause on $68bn in US foreign aid has sparked fears that the UK may need to step in, according to senior MPs. Labour’s Sarah Champion, chair of the international development committee, warned the cuts could force Britain and other donors to fill the void.

Former Conservative minister Andrew Mitchell highlighted the ripple effect, as the UK and US have long coordinated aid efforts in countries like Lebanon and Ethiopia. He also expressed concerns about losing key talent in the development sector, comparing it to the loss of expertise when DFID was scrapped in 2020.

Ryan Henson, of the Coalition for Global Prosperity, said the abrupt halt could immediately disrupt NGOs like Halo, which operates in Ukraine. While the UK spends around £9bn on aid, it is far smaller than USAID’s £40bn budget, making it difficult to compensate for Trump’s cuts.

THE TELEGRAPH

Foreign Secretary David Lammy has warned that Donald Trump’s 90-day freeze on US foreign aid could allow China to expand its influence in Africa. The US president’s cuts include layoffs at USAID, though a federal judge has temporarily blocked them.

Speaking in Kyiv, Lammy compared Trump’s move to Boris Johnson’s closure of the UK’s Department for International Development (DFID) in 2020, calling it a “big strategic mistake” that took years to unravel. He stressed that foreign aid is vital for soft power, warning that China and other global rivals could exploit the gap left by the US.

With thousands of USAID staff on paid leave, uncertainty looms over US development efforts. Lammy urged Washington to reconsider, highlighting how hasty cuts weaken Western influence in developing regions, particularly in Africa, where Beijing has been expanding its economic and political footprint.