Britain’s exit from the European Union (EU) is expected to rattle the US economy and weaken America’s diplomatic leverage in the bloc.
The so-called Brexit has already shaken equity markets and driven up the value of the dollar, while upending the corporate strategies of American companies based in London.
The pound fell to its lowest level against the US dollar since 1985 as the global markets reacted to the EU referendum results. Following the Brexit results, the euro also sank against the dollar and the Japanese yen.
A falling pound and euro could cause the dollar to surge, further suppressing demand for US exports.
“I only see negative economic outcomes,” if UK voters decide to leave the EU, US Treasury Secretary Jacob Lew said ahead of the vote.
US officials also worry a British exit from the EU will weaken the American economy if growth in Washington’s largest trading partner, the EU, suffers from a British decision to leave.
“The UK…