US President Donald Trump’s trade actions have sparked international concern over potential law-breaking, despite a lack of visible lawsuits on the Litigation Tracker website.
Trade disputes fall under international law and are usually handled by the World Trade Organization (WTO). However, experts warn that Trump’s tariffs could be in violation of existing trade laws.
Jürgen Matthes from the Institute for the German Economy (IW) argues that US tariffs against China, the EU, and other countries would also violate international trade law. Matthes claims that it is “very likely” the WTO arbitration panel would rule US tariffs unlawful.
However, due to the non-functional Appellate Body, a legally binding ruling cannot be issued. Trump’s administration may appeal any decision before the Appellate Body. This situation frustrates 166 WTO members who joined the organization to have at least a minimum set of binding rules in international trade.
Canadian and Mexican officials disagree with Trump’s tariffs, viewing them as violations of both the USMCA and WTO rules. Law professor Kathleen Claussen suggests that Trump’s administration might use a workaround, citing the International Emergency Economic Powers Act (IEEPA).
The situation remains uncertain, as Trump views tariffs as pawns in trade negotiations rather than their own value. Experts warn of ongoing uncertainty caused by constant new threats, with European nations preparing countermeasures.
Matthes hopes for a deal to be reached beforehand and emphasizes that “a trade war harms everyone.”
Source: https://www.dw.com/en/trump-tariffs-can-the-us-be-punished-for-breaking-trade-laws/a-71788197