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U.S. President Donald Trump's recent tariff proposals are threatening to plunge the World Trade Organization (WTO) into its most significant crisis since its inception in 1995, according to experts Jannik Belser and Benjamin Triebe. The Trump administration's plans to reassess all U.S. trade relations aim to counter perceived unfair practices with reciprocal tariffs, potentially undermining the multilateral trade framework established by 166 member countries.
Experts warn that Trump's approach contradicts the WTO’s foundational principles, which promote non-discrimination and dispute resolution among members. The WTO was created to facilitate free trade and has struggled with internal dysfunctions for years. Its dispute resolution mechanism has been incapacitated due to U.S. blockades against appointing new judges, rendering the organization less effective, stated economist Ralph Ossa.
Professor Joost Pauwelyn cautioned that Trump's tactics could trigger a domino effect that dismantles established multilateral trade regulations, leaving smaller nations particularly vulnerable. As tensions escalate, the future of the WTO and global trade stability hangs in the balance.