Trump Cuts World Trade Organization Funding

The United States has suspended its financial contributions to the World Trade Organization (WTO) for 2024 and 2025, marking a significant escalation in President Donald Trump's protectionist trade policies.

This decision aligns with the administration's broader agenda to reduce government spending and retreat from global institutions perceived as conflicting with its "America First" economic strategy.

The funding halt is part of a larger trend under Trump's leadership, which includes withdrawing from organizations like the World Health Organization and reducing commitments to others.

The administration has expressed dissatisfaction with the WTO, accusing its appellate body of judicial overreach in trade disputes. In 2019, the U.S. blocked the appointment of new judges to the WTO's appeals court, crippling its key dispute resolution mechanism.

The WTO's annual budget for 2024 was approximately 205 million Swiss francs ($232 million), with the U.S. expected to contribute about 11%, based on its share of global trade. The suspension of payments could severely impact the organization's operations and may lead to penalties under WTO rules if dues remain unpaid for over a year.

In tandem with this decision, Trump announced a 25% tariff on imported cars not manufactured in the U.S., effective April 2, calling it "liberation day." While the White House projects $100 billion in annual revenue from these tariffs, industry experts warn of disruptions to global supply chains and increased consumer prices. Trump defended the move as permanent, aimed at revitalizing domestic manufacturing.

The tariff announcement has drawn sharp criticism from major U.S. trading partners. Canadian Prime Minister Mark Carney vowed to defend Canadian workers and companies, while European Commission President Ursula von der Leyen warned that tariffs would harm businesses and consumers on both sides of the Atlantic.

This suspension of WTO funding and imposition of tariffs underscores a dramatic shift in U.S. trade policy, with far-reaching implications for international trade relations and global economic stability.