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Adam Tooze: Washington Is Undermining the Trade System It Helped Build

The World Trade Organization nears a breaking point over U.S. tariffs against China.

By , a deputy editor at Foreign Policy.
U.S. President Joe Biden delivers remarks.
U.S. President Joe Biden delivers remarks.
U.S. President Joe Biden delivers remarks on developing infrastructure jobs in the East Room of the White House in Washington on Nov. 2, 2022. Oliver Contreras/Getty Images

The United States, which was central to the establishment of the global trading system 75 years ago, is challenging it these days. Last month, the World Trade Organization (WTO) declared that some of the tariffs imposed by the Trump administration, which U.S. President Joe Biden has kept in place, are illegitimate, according to the WTO’s own rules. The Biden administration responded essentially by saying it considers the tariffs to be justified on national security grounds. Conveniently, the appellate body at the WTO that would be tasked with adjudicating the dispute is unable to do its job because the United States has refused to appoint judges that would allow it to function. This comes as Europe is also upset at the United States for subsidies and the 2022 Inflation Reduction Act, which Europe claims are also in violation of the WTO. That may lead to other retaliatory tariffs—essentially the kind of trade war the WTO was designed to prevent.

Cameron Abadi is a deputy editor at Foreign Policy. Twitter: @CameronAbadi

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