Trump Cuts U.S. Funding to World Trade Organization Amidst Protectionist Shift

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The United States has officially cut its financial contributions to the World Trade Organization (WTO), as reported by Reuters, citing sources within the trade sector. This decision aligns with the Trump administration’s continued embrace of protectionist trade policies and a broader strategy to reduce government spending.

Under President Donald Trump’s leadership, the U.S. has increasingly adopted an “America First” economic agenda, which often positions international institutions as adversaries to national interests. This shift includes the imposition of hefty tariffs on trading partners and a retreat from organizations like the WTO and the World Health Organization.

The WTO has already been significantly weakened by Trump’s earlier decision to block the appointment of judges to its appellate court in 2019. The U.S. was expected to contribute approximately 11 percent of the WTO’s budget, which amounted to around $232 million for 2024. The recent funding cut raises concerns about potential punitive actions from the WTO, especially in light of its regulations regarding unpaid dues.

In a related move, Trump announced a 25 percent tariff on cars not produced in the U.S., set to take effect on April 2. This strategy, framed as a means to bolster domestic manufacturing, has drawn criticism from economic analysts who caution that it could disrupt global supply chains and drive up prices for consumers.

Leaders from key trading partners, including Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen, have expressed strong opposition to these tariffs, highlighting their potential negative impacts on businesses and consumers alike.

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As developments unfold, the implications of the U.S. withdrawal from the WTO and the new tariffs are likely to present significant challenges for international trade relations moving forward.

For more updates and insights, visit Newspot Nigeria.

-Bloomberg News