Donald Trump halts US Funding to World Trade Organization: What to Know
By Gabe Whisnant and Sonam Sheth
The United States has suspended its contributions to the World Trade Organization (WTO), Reuters reported, citing three trade sources.
The Context
Reuters’ reporting comes as the Trump administration continues adopting protectionist trade policies and intensifies its efforts to drastically reduce government spending.
President Donald Trump has also put the U.S. on a broader shift away from international institutions he and his allies see as conflicting with their “America First” economic agenda.
That shift includes imposing steep tariffs on American trading partners and pulling away from international bodies including the WTO, the World Health Organization, the United Nations and foreign aid initiatives.
President Donald Trump speaks at a reception celebrating Women’s History Month in the East Room of the White House, Wednesday, March 26, 2025, in Washington
What To Know
The WTO has already been significantly weakened by Trump’s decision in 2019 to block the appointment of new judges to its top appeals court.
That action left the WTO’s core dispute resolution mechanism only partially operational, as Washington accused the appellate body of overstepping its authority in trade rulings.
In 2024, the WTO operated on an annual budget of 205 million Swiss francs (approximately $232 million). Based on a contribution system tied to each member’s share of global trade, the United States was expected to provide around 11 percent of that total, Reuters reported, citing public WTO records.
Earlier this week, Trump announced that his administration will impose a 25 percent tariff on cars not made in the U.S., in a move the White House said is aimed at boosting domestic manufacturing, though it could also strain automakers reliant on international supply chains.
The tariff will take effect on April 2, Trump said, calling it “liberation day.”
Although the White House projects that the new tariffs will generate $100 billion in annual revenue, industry analysts and economists across the spectrum warn that it could severely disrupt global supply chains and lead to higher prices for consumers.
Despite these concerns, Trump defended the tariffs as a way to bring manufacturing back to the U.S., calling current cross-border supply chains “ridiculous” and declaring that “this is permanent.”
Trump’s announcement sparked immediate blowback from the leaders of the U.S.’s top trading partners, including Canada and the European Union.
What People Are Saying
Canadian Prime Minister Mark Carney said Wednesday: “This is a very direct attack. We will defend our workers. We will defend our companies. We will defend our country.”
European Commission President Ursula von der Leyen said in a statement Wednesday: “Tariffs are taxes—bad for businesses, worse for consumers equally in the U.S. and the European Union,” she said, adding that the EU’s executive branch would assess the impact of the move, as well as other U.S. tariffs planned for coming days.
What Happens Next
Sources told Reuters that the U.S. could face penalties from the WTO based on the body’s rules, which say that any member that fails to pay its dues after more than a year could be subject to “administrative measures” which get stricter the longer the fees are unpaid.
Original source: https://www.newsweek.com/donald-trump-halts-us-funding-world-trade-organization-what-know-2051586
