Trump’s Assault on the Global Trading System
This chapter addresses Trump’s trade policy goal, which was to overturn the rules-based global system favoring trade liberalization. He did this with the help of his trade representative, Robert Lighthizer, a lawyer familiar with the legal and institutional aspects of trade. His assault on WTO rules began with unilateral tariffs on steel and aluminum, declaring that imports from all countries, including close allies, endangered national security. He bypassed WTO dispute settlement provisions to launch a trade war against China, with escalating tariffs, and finally forced the WTO dispute settlement system to shut down with repeated vetoes of appellate body appointments. His so-called trade war truce with China also violated WTO provisions on nondiscrimination. He repeatedly imposed tariffs on countries he deemed to be currency manipulators, despite evidence to the contrary, and threatened tariffs on Mexico in order to force the country to change its immigration policy. As the former leader of the global trading system, Trump’s actions undermined the foundations of the global trading system.