How Trump is attacking the WTO and whether it can survive

The global trade war launched by US President Donald Trump has become a major test for the World Trade Organization (WTO). Unilateral tariffs, the blockade of the WTO’s Appellate Body, and financial pressure have cast doubt on both the organisation’s effectiveness and the very concept of multilateral trade dispute resolution.

China has challenged the US actions at the WTO but is also responding in kind, violating WTO rules itself. This sets a dangerous precedent that other countries may follow.

Read more in the article by Olena Omelchenko, a partner at the law firm "Illyashev & Partners" – WTO’s moment of truth: can the global trade system survive Donald Trump?

The article was published as part of the special project "Trade Wars", supported by the law firm Ilyashev & Partners.

Although media often link Trump’s trade war mainly to China, US tariffs have also affected many of its allies.

Washington justifies its moves using Article XXI of the General Agreement on Tariffs and Trade (GATT), which permits restrictions for national security.

However, this article has always been interpreted narrowly to avoid abuse. The US reinterpretation risks turning this exception into the rule, undermining the WTO’s foundation.

This isn’t Trump’s only assault on the WTO. In 2019, the US blocked the appointment of judges to the Appellate Body, paralysing the dispute resolution system. Without appeals, decisions can't be enforced, leaving countries unaccountable and unable to protect their interests through the WTO. This opens the door to unchecked use of unilateral tariffs.

In March 2025, the US suspended its WTO contributions for 2024–2025, citing an internal review of international funding. The financial blockade now threatens the WTO’s broader operations, not just its appeals mechanism.

These moves are part of Trump’s broader isolationist strategy. Under his America First policy, the US is stepping back from global institutions that don’t align with its agenda.

Trade wars, legal manipulation and financial pressure from the US have triggered a broader erosion of the multilateral trade system. It’s not just about rule violations. It’s about the breakdown of trust and cooperation.

Still, the WTO is not doomed. After the Appellate Body was paralysed, WTO members (including the EU) created a temporary appeal mechanism, showing that states can still find ways to maintain predictability in trade, even under pressure.

This matters especially for Ukraine.

As a smaller economy, Ukraine depends on stable and predictable rules. So it’s premature to "bury" the WTO. Ukraine should continue using the tools available to it as a member. Trade disputes take years. By the time a decision is reached, the world may once again value rules-based order.

Reform is still possible. What’s needed is political will.