Archive · 25 Jul 2025
Is Trump's Trade Policy Threatening the WTO?
Imagine a club (the WTO) where countries agree to trade fairly.
The US, a major player, is now making deals with only some countries, which could be seen as unfair.
The US is also unhappy with the club's judges, even blocking their appointments.
Some people in the US want to leave the club altogether.
This shift towards individual deals and criticism of the club could weaken it, changing how the world trades.
The US, under Trump, is using tariffs and bilateral deals, potentially undermining the WTO.
The US is increasingly critical of the WTO's Appellate Body, accusing it of overreach and bias.
The US has blocked appointments to the Appellate Body, rendering it non-functional.
Some US groups advocate for complete withdrawal from the WTO.
The US's actions are perceived as a shift away from multilateral trade, favoring bilateral agreements.
- Who
- The United States, particularly under the Trump administration; other WTO member countries; and various think tanks and academics.
- What
- The potential weakening of the World Trade Organization due to US trade policies.
- When
- Ongoing, with actions escalating during the Trump administration.
- Where
- The World Trade Organization and its member countries.
- Why
- The US is deviating from multilateral trade to negotiate bilateral deals and views the WTO's dispute resolution system as biased.
Advocates of Multilateral Trade
Supporters of Bilateral Trade Deals
WTO Principles
Advocates of Multilateral Trade
Emphasizes mutual benefits through conformity to the system of the WTO.
Supporters of Bilateral Trade Deals
Focuses on leveraging the WTO to negotiate on its terms on contentious issues
US trade strategy
Advocates of Multilateral Trade
US dominance is being curtailed as China and India have brought an end to US dominance and curtailed its ability to set the rules of global trade.
Supporters of Bilateral Trade Deals
US should pursue bilateral trade more actively.
- WTO Foundation
- 1995
- GATT Establishment
- 1947
- US Trade Relations
- With over 200 countries
- US Trade (2022)
- $7.0 trillion in exports/imports