"Just as Nixon abandoned the Gold Standard to maximize U.S. power, the U.S. will likely have to abandon the dollar as the world reserve currency in the isolationist age. The Nixon Administration grew frustrated with Europe and Japan for not adjusting to their restored economic strength. U.S. officials expected these powers to open up domestic markets to U.S. exports, lifting post-war trade protectionist measures, and to act in good faith towards the U.S., which was taking the brunt of financial expenses for NATO. From the U.S. perspective, the postwar alliance was beginning to feel one-sided. Rather than expressing gratitude for the Marshall Plan or America’s defense against Soviet expansion, France, Germany, and the UK were redeeming their dollars for gold at an accelerating pace, threatening the Gold Standard and undermining U.S. monetary sovereignty. At the same time, Europe and Japan were flooding American markets with cheap industrial goods, undercutting domestic manufacturers while keeping their own markets relatively closed. The United States, meanwhile, bore the full weight of leadership for the Western Alliance. To Washington, it looked like the U.S. was footing the bill for a liberal order that increasingly advantaged its allies at its own expense. In August 1971, President Richard Nixon responded with what became known as the Nixon Shock: - He suspended the convertibility of the dollar into gold, effectively ending the Bretton Woods system. - He imposed 10% tariffs on all nations to protect domestic industry. - He froze domestic wage and price increases temporarily to control inflation.