The Trade War has claimed its first victim

Tariffs from the United States, Canada, China, Mexico, and the EU may have damaged the WTO beyond repair.

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Abstract: The World Trade Organization (WTO) might be the first victim of the trade war between China, the United States, and the European Union. Today, each is in flagrant violation of its rules, and the institution’s credibility as the protector of a rules-based trading system is in serious doubt.

U.S. President Donald Trump initiated the trade war in March when he announced the imposition of a 25 percent tariff on steel imports and 10 percent tariff on aluminum imports from most countries. In May, he expanded the duty to include imports from Canada, Mexico, and the EU. In a move that surprised few, China reacted by imposing tariffs of its own on an equivalent volume of steel and aluminum imports from the United States. Canada, Mexico, and the EU eventually joined China in retaliating, too.