Trade experts and diplomats are warning that the US may be preparing to either formally exit the WTO or render it irrelevant by continuing to block its core functions. (Getty Images)
Explainers
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News1819-01-2026, 12:54

Trump's Policies Threaten WTO: Global Trade System Faces Collapse, India's Future Uncertain

  • Donald Trump's policies, including reciprocal tariffs and the 'Make America Great Again' agenda, are seen as undermining the global trade system overseen by the WTO.
  • The US is accused of intentionally paralyzing the WTO's appellate body by blocking new judges, rendering dispute rulings unenforceable and leading to non-compliance.
  • Experts suggest a US exit or continued weakening of the WTO would transform global trade, replacing adjudication with retaliation and fragmenting supply chains.
  • For India, a weakened WTO means reduced ability to challenge trade barriers, impacting exports and its push to become a manufacturing hub.
  • While some argue a weaker WTO offers India flexibility for domestic policies, it also exposes it to the unchecked power of larger economies in bilateral negotiations.

Why It Matters: Trump's actions are pushing the WTO towards collapse, forcing India to rethink its trade strategy in a power-driven global economy.

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