Trump’s 2025 tariffs challenge WTO rules, risking trade disruption. Here’s how India, China, and the WTO are responding.
New Delhi (ABC Live): President Donald Trump’s 2025 tariff plan marks a big change in global trade, and it reflects a clear Trump tariffs WTO dismantling strategy. He has used new tariffs to push back against the World Trade Organisation (WTO), the body that sets trade rules. His government says WTO rules hurt U.S. control over trade and help rivals like China and India. This report shows how Trump is using tariffs not just to protect U.S. goods, but also to weaken the WTO. It also looks at how India and China are reacting. For background, read the WTO’s official overview on Tariffs and the OECD’s latest Trade Outlook Report.
Trump’s Strategic Goals Behind Using Tariffs
Restoring U.S. Trade Control
Trump says WTO rules limit U.S. power over trade decisions. So, he uses one-sided tariffs to fight back and favors deals made between two countries instead of global rules.
Undermining WTO Rules
Since 2019, Trump has blocked key WTO jobs from being filled. In 2025, he added more tariffs that ignore WTO rules. This shows other countries that the U.S. no longer wants to follow global trade rules.
Targeting China’s Growth
Trump’s tariffs mostly hit Chinese goods. His goal is to stop China’s rise in global markets by breaking trade ties and shifting supply chains away from China.
Effects of Trump’s Tariffs on the WTO
Breaking the Dispute System
The WTO can’t settle trade fights if its courts are blocked. Trump’s actions have caused long delays in case rulings. For example, in past WTO cases like “US — Shrimp” and “US — Steel and Aluminium Tariffs,” one-sided U.S. actions were found to break rules. Now, with no working court, such decisions can’t happen.
Rise of One-on-One Deals
More countries are making their own deals outside the WTO. This breaks up the global system and reduces the WTO’s role.
Cutting the WTO’s Budget and Power
The U.S. stopped paying its share of the WTO budget. That’s about 11% of the total. This weakens the WTO’s work and trust in its fairness.
Data Analysis of Trump Tariffs WTO Dismantling Strategy
- In “India — Agricultural Products,” India won a case against U.S. limits on farm goods.
- In “China — Rare Earths,” China lost a case on the limits it placed on certain exports.
- U.S. average tariffs went up from 2.5% to 7.8% after 2025.
- The number of unresolved WTO disputes grew by over 220% from 2018 to 2025.
- Global trade may fall up to 1.5% in 2025 due to Trump’s tariffs.
- The OECD says U.S. GDP may drop 0.3%, and China’s by 0.7%.
- The Boeing case showed U.S. subsidies broke WTO rules. It sparked more U.S. anger at the WTO. Similar rulings include the Airbus–Boeing dispute.
Trump Tariffs: What the U.S. Gains by Weakening the WTO
More Freedom in Trade Deals
Without WTO rules, the U.S. can make trade deals that favour its own goals. This gives it more power in talks.
Promoting Local Industry
Tariffs keep out foreign goods. This helps U.S. businesses sell more at home.
Breaking Ties with Rivals
Ending WTO rules helps the U.S. avoid trading with China and other rivals. This lets it build new supply chains.
Winning Local Support
Many voters blame global trade for job losses. So, going against the WTO wins Trump more support.
Can India and China Fight Back?
Using WTO Rules
India and China can still file cases with the WTO, even if the appeals court is not working. This shows their support for rule-based trade.
Global Partnerships
They can work with other nations in groups like BRICS or the G20 to speak out together against U.S. tariffs.
Counter Tariffs
They can also hit U.S. goods with their own tariffs. This creates pressure inside the U.S. to end the trade war.
Calling for WTO Fixes
Both countries can push to fix the WTO’s court system so that rules can be enforced again.
India and China Strategies Against Trump Tariffs WTO Dismantling
Build More Trade Ties
Joining trade groups like RCEP can reduce harm from U.S. tariffs. It also helps them find new markets.
Help Fix the WTO
They can support fair reforms at the WTO that protect smaller countries and make rules work again.
Use Smart Tariffs
By placing tariffs on U.S. goods that affect key American industries, they can influence U.S. decisions.
Find New Markets
Selling more to Europe, Africa, and Latin America helps reduce their dependence on the U.S.
Boost Local Strength
By improving their own industries and creating jobs, India and China can be less affected by outside shocks.
Key WTO Cases That Matter
- US — Gasoline: WTO said U.S. fuel rules unfairly hurt foreign companies.
- EC — Hormones: EU’s ban on hormone-fed beef failed due to weak science.
- US — Cotton Subsidies: WTO said the U.S. paid unfair support to its cotton farmers.
- India — Export Incentives: India was told its export bonuses broke trade rules.
Conclusion: The Impact of Trump Tariffs on WTO Dismantling
Trump’s tariff plan is not just about trade. It’s a clear plan to weaken the WTO and make the U.S. the main force in global trade. Unless other countries act together and fix the WTO, global trade rules may fall apart. Inaction may allow Trump tariffs and WTO dismantling efforts to permanently reshape international trade.
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