Trump tariffs: Can US be punished for breaking trade laws?

New York University’s Litigation Tracker website, which lists legal challenges to the Trump administration’s actions, already shows an impressive number of cases. First published on January 29 and last updated on February 27 by the university’s law school, it records nearly 100 instances where citizens or institutions have taken legal action against decisions made by President Donald Trump. These lawsuits primarily concern the numerous executive orders issued since he took office, such as the dissolution of agencies like USAID, the dismissal of state employees, and the suspension of government payments. However, there is no mention of Trump’s trade actions against partners, whether allies or adversaries. Trade disputes fall under international law and are typically handled by the World Trade Organization (WTO) in Geneva, Switzerland. Jürgen Matthes from the Institute for the German Economy (IW) in Cologne explains that Trump is violating existing trade laws with his tariffs, and additional measures against China, the EU, and others would also breach international trade law. Although legal challenges at the WTO are currently ineffective due to the non-functional Appellate Body, such actions remain important to uphold the international trade system. Even if the WTO arbitration panel ruled against the U.S., the Trump administration would likely appeal, and the appellate body has been non-operational for years. This situation leaves the 166 WTO members without a binding ruling against the U.S. Canada and Mexico view Trump’s tariffs as a significant legal violation, as they are not only WTO members but also partners in the USMCA free trade agreement. Kathleen Claussen, a law professor at Georgetown University, notes that U.S. government lawyers may argue justification under the International Emergency Economic Powers Act (IEEPA), which allows the president to intervene in trade during a declared national emergency. Trump declared such an emergency related to migration and drug issues. Claussen suggests that Trump uses tariffs as leverage in trade negotiations, similar to discounts offered by mobile providers. Canada and Mexico have experienced Trump’s unpredictable tariff threats firsthand, with sudden impositions and postponements. European nations, particularly Germany, are considering responses if Trump imposes tariffs on their industries. The European Commission has announced countermeasures without specifics. Matthes hopes for a deal, possibly through increased European purchases of U.S. goods. “A trade war harms everyone,” he said, but added, “We also mustn’t accept everything.” — news from DW (English)

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