Global uncertainty drives widespread sentiment decline, with Western nations hardest hit, new Brand Finance data reveals
LONDON, 20 January 2026 – The United States records the steepest decline in Soft Power among all the world’s 193 nation brands, yet retains the top rank in the new iteration of the Global Soft Power Index by Brand Finance inaugurated today at a launch event in Davos. The US’ Soft Power score is down -4.6 points compared to last year, now standing at 74.9 out of 100, less than 1.5 points ahead of second-ranked China’s 73.5.
Brand Finance publishes the Global Soft Power Index based on a survey of more than 150,000 respondents from over 100 countries ranking global perceptions of all 193 member states of the United Nations. Thanks to the scope of the survey, the Index is the world’s most comprehensive study on perceptions of nation brands, providing insights for governments, destination marketing organisations, and academics.
Soft Power is defined as a nation’s ability to influence preferences and behaviours in the international arena through attraction and persuasion rather than coercion. Each nation is scored across 55 different metrics to arrive at an overall score out of 100 and ranked in order from 1st to 193rd.
The US records considerable drops in Reputation (26th, -11 ranks) as international backlash to ‘America First’ policies coincides with declines across nation brand attributes, including generosity (-68), good relations with other countries (-50), friendliness (-32), ease of doing business (-21), and support for climate action (-16). Trust (-24) and governance indicators, such as human rights and rule of law (-10), safety (-9), political stability (-8), and ethical standards (-4) have also weakened.
Nonetheless, the US continues to demonstrate strong competitive dominance across key Soft Power domains, from arts and entertainment (1st), sporting leadership (3rd), and iconic global brands (2nd), to Silicon Valley science and innovation (3rd), and space exploration (1st). Its presence is further amplified by President Trump’s ability to set the pace of international affairs and dominate the news cycle, helping the US maintain its number one positions for Familiarity and Influence, as well as across diplomatic footprint, media and communication, and recognition of government leaders.
David Haigh, Chairman & CEO, Brand Finance, commented:
“Global audiences increasingly perceive a disconnect between the image of America they are used to and the change in both direction and process from the new administration, causing reputational spillover even across domains seemingly unrelated to President Trump’s policies. At the same time, the US is able to maintain its premier spot in the Global Soft Power Index thanks to unmatched Familiarity and Influence, underpinned by traditional strengths in popular culture or technological innovation, and newly reinforced by President Trump’s undeniable ability to shape the global agenda and capture the global imagination.”
As US Soft Power declines, China has consolidated its 2nd position in the Global Soft Power Index. China’s Reputation has risen 9 places to 18th, overtaking the United States for the first time, supported by improvements in People & Values, Governance, and Sustainable Future. Perceptions across traditional weaknesses of China, such as friendliness, generosity, ease of communication, and lifestyle appeal have also improved, with China now ranking higher than the US on 19 of the 35 nation brand attributes measured.
China has reinforced perceptions in Business & Trade (2nd, +2) and Education & Science (1st, +2). It now ranks 1st globally for not only ease of doing business and future growth potential, but also technology and innovation, and advanced science. It has also risen to 3rd globally for perceptions of strong and stable economy (+5 ranks) – the most influential driver of Soft Power. These combined improvements have helped sustain China’s high levels of Influence (2nd) and Familiarity (4th).
David Haigh, Chairman & CEO, Brand Finance, commented:
“By addressing key weaknesses and honing core strengths, China has built a credible alternative to US domination on the global stage. Its progress reflects a deliberate, multi-faceted strategy combining policy coherence, economic expansion, technological advancement, and cultural engagement. Its sustained improvements across nearly all pillars demonstrate that Soft Power gains can be achieved through patient, structured, and consistent efforts.”
The Global Soft Power Index 2026 highlights a broad global decline of nation brand perceptions, driven by economic uncertainty, geopolitical tension, and social pressures. Audiences worldwide are more cautious and more likely to scrutinise nations’ behaviour, leading to lower scores across the Index and echoing the trust erosion seen during the COVID-19 period.
Western nations account for a disproportionate share of the decline. The US, UK, Germany, and France all record sharper-than-average drops, reflecting growing scepticism about their ability to deliver on long-standing promises of stability, prosperity, and leadership. The UK falls to its lowest-ever position at 4th, while Germany and France see weakening perceptions of economic strength, innovation, and influence.
Konrad Jagodzinski, Place Branding Director, Brand Finance, commented:
“The negative shift in the global mood highlights a critical lesson about Soft Power in 2026. Publics are increasingly sensitive to the alignment of values, actions, and outcomes. Nations that fail to demonstrate reliability, credibility, and impact face erosion not only in specific domains but also in broader international reputation and relevance. Soft power is not solely about visibility or size; it is about perception that a nation is delivering on promises implicit in its brand. Nations failing to uphold these promises are penalised by global audiences.”
In contrast, Switzerland (7th) - demonstrating greater resilience - ranks number #1 on more metrics than any other nation brand in the Index, scoring 17 golds and topping the Soft Power medal table once more in 2026.
Other examples of success include Japan which rises to 3rd, overtaking the UK with strengths in Business & Trade (1st), Sustainable Future (1st), Education & Science (2nd), and Governance (2nd). Tourism has boosted Familiarity (6th, +1) and related attributes, including appealing lifestyle (4th, +9), visit appeal (8th, +3), friendliness (7th, +12), and fun (21st, +15), highlighting the importance of direct experience in nation branding.
Italy (9th) shows complementary resilience, recording the smallest decline among the top 10 nations by aligning with dominant global narratives, as Prime Minister Giorgia Meloni’s government balances traditional alliances with high-profile populist messaging to sustain international relevance.
The UAE (10th) solidifies its Influence (8th), with strong rankings for International Relations (9th), Business & Trade (10th), and improving ranks for Sustainable Future (18th, +4) and Governance (12th, +4), driving up Reputation (+1), and now ranking as the world’s 7th most preferred destination for investment.
South Korea rises to 11th, offsetting Governance challenges with gains in Familiarity (15th, +2) and Influence (15th, +2), largely fuelled by the global success of K-pop, K-dramas, and K-beauty.
Note to Editors
Full ranking, methodology, charts, commentary, expert contributions, and in-depth interviews on nation brands are available in the Global Soft Power Index 2026 report. The study was inaugurated today at the Global Soft Power Summit alongside the World Economic Forum in Davos. The Summit agenda includes a keynote speech by The Rt. Hon. Justin Trudeau, Former Prime Minister of Canada.
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Brand Finance is the world’s leading brand evaluation and strategy consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions. Headquartered in London, Brand Finance operates in over 25 countries.
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