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

Explainers
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News18•19-01-2026, 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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