The US has long been the leader and driving-force that advocate the liberalization of trade for decades but now the US is causing anxiety among supporters of the process of liberalization and globalization. Under the Trump’s administration, the US approach to international trade is adversarial and assertive, which is drive by the notion of economic nationalism. Trump’s nationalism agenda has stocked fear that US current approach will under the international trade system. The international trade system is mainly managed by agreements among groups of countries that intend to have deeper trade integration under the framework of the World Trade Organization (WTO). President Trump has shown little interest in those agreements and even the multilateral system. He has pulled the US out of the Trans-Pacific Partnership and has also threatened to deny the North American Free Trade Agreement. However, the Trump administration is contradictory on the WTO system and the US even intends to use WTO justification as a defense to address trade deficits e.g. the recent controversial tariffs on steel and aluminum. It is followed by an investigation by US Commerce Department which conclude that imports of these metals would threaten national security of the US. Under the WTO framework, it does permit countries to impose trade barriers on imports in certain circumstance to protect national security. But the EU and China do not believe that the action of the US is based on the real national security concerns but protectionism. Tariffs on importer solar panels and washing machines were safeguard measures, if they are done in a way that is consistent with WTO rules, were permitted safeguard measures. But its recent action that target Chinese goods has caused concerns. It is true that protecting intellectual property (IP) of trade partners is permitted in WTO rules and both the US and EU share the concern of China over IP. But countries in most circumstances are supposed to use WTO procedures before undertaking unilateral retaliation with authorization. If the US would like to use WTO justification, will President Trump be willing to wait until there is a ruling? It is possible that the US will adopt further action while the WTO process is going on. But this would be in consistent with WTO rules. Chinese officials warned that the unilateralism of the US undermines the multilateral trading system and member countries of WTO should act together to put the US under the WTO rules. It seems that the US willingness to use dispute settlement process of WTO show that Trump administration sees the WTO as a useful measure while China first retaliatory blows is announced without a WTO ruling. However, it is still debatable whether WTO provision could apply in this case. The economic nationalism for trade policy under Trump Administration has received disagreements even resistance from his team. President Trump’ view on trade is that other countries take advantage of the US and trade agreements are defective and unfair. It is true that American tariffs are relatively low (even there are tariff peaks on some goods). But the main losers from tariffs are buyers of these affected goods in the country that imposes them. American consumers have to pay more as a result of tariffs. These consumers would support low US tariffs. But Trump’s focus has been put on producers i.e. firms and employees rather than American consumers.

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BBC