America's global trade war has finally arrived at the WTO.
Seven countries -- including Mexico, Canada and the European Union -- are disputing U.S. tariffs on foreign steel and aluminum at a meeting of the World Trade Organization in Geneva today. China is asking the WTO to review the tariffs on roughly half its exports to the United States. The U.S. is fighting back with complaints about Chinese counter-tariffs.
Rarely has the world body faced so many disputes about a handful of actions, experts say. But President Trump's pursuit of protectionist trade policies has stoked nationalism around the globe. His disregard for international rules of the road has forced other countries to sidestep the system as well. And the WTO is struggling to keep up with the changing tides.
Monday's closed-door meeting of the WTO's dispute settlement body was the first time countries were collectively able to confront each other and air their grievances over the Trump tariffs. Statements released afterward suggested the discussion got heated.
Trump did not consult the WTO before announcing the 25% tariff on foreign steel and 10 percent tariff on aluminum in May, arguing the measures are critical to national security.
The United States followed a similar playbook when it imposed tariffs on a broad swath of Chinese imports, citing the country's violation of intellectual property laws. China retaliated before the WTO could weigh in.
Experts say the moves have exposed how broken the system has become. The disputes on Monday's docket will be a critical test of whether the WTO still has teeth. The review is expected to take roughly two years. An appeal could throw the complaints into limbo even longer, especially since the United States has blocked the approval of WTO officials to hear those appeals.
