When President Trump threatened Brazil to punish tariffs on Wednesday, there was no strange mathematical equation for reasons this time.
50% of the product collection Repaid a perceived “Witch huntingOppose his political allies, Jair Bolsanaro, his supporter Tried a coup Two years ago.
According to trade experts Kristen Hopewelland time exhausted the remains of the post-war commercial system that promoted stability and prosperity around the world.
“Trump is a completely unreliable negotiating partner,” she told her. wealth. “Any deal you have with the government is not worth writing about.”
It seems like I’m going to hammer home, the news begins Appear Vietnam caught off guard when Trump on Thursday Announce too early All goods entering the United States from Southeast Asian countries are taxed 20%. According to reports, Vietnamese officials still hope that there is one person close to half.
None, either His tariff rates seem to be rhyme or reasoning. On Wednesday, when asked how he calculated his various import duties, the president replied that he use “A formula based on common sense” that reflects “how we are treated.”
Hopewell, a professor at the University of British Columbia, believes that this unstable and fickle approach to international negotiations is a sign of the Trump agreement: “He can simply come back and ask for more. There is no guarantee that it will actually be maintained.”
This is because the president had already removed a cornerstone in his first administration six years ago when he blocked all appointments from the World Trade Organization (WTO), the World Trade Organization (WTO), the global Supreme Court.
“The WTO is unique among international organizations because its rules are actually binding on the state. It has teeth,” Hopewell said. have teeth.
Kick out of the United States
Since the Biden administration continued its policy of blocking appointments to fill vacancy, there is no quorum to rule on trade disputes, so there is little incentive to follow the rules. Instead, they can break them almost without punishment.
President Trump’s letter to the Federative Republic of Brazil pic.twitter.com/g8jatxgrqi– Quick Response 47 (@RapidResponse47) July 9, 2025
The United States does not always favor removing these guardrails.
Ten years ago, the country led many key partners, including Japan and the EU, exerting rights on China when trying to limit the export of key minerals, including rare earths.
In 2015, they later won before the Appellate Body, forcing Beijing to surrender.
Thanks to Trump, this enforcement mechanism no longer works.
In January 2020, just weeks after the WTO Appellate Body retired, Indonesia imposed a ban on exports of Raw Nickel.
Since it has one of the remaining sediments that this element is crucial to batteries and stainless steel, it believes it may force domestic downstream industries to create to process and refine ores.
Other countries argued before the WTO that it violated the rules and won– Or at least they think they have.
Indonesia To be fully aware that a ruling to settle a dispute is impossible, it is impossible to exercise its right to formally appeal to the Appellate Body.
“By attracting blanks, it can continue to illegal export restrictions on nickel, effectively extending it to other commodities,” Hopewell said. “Other countries are now imitating Indonesia and introducing similar bans on mineral exports.”
Hopewell believes that the time for bold action has arrived. In the column politics She believes this week that the international community should consider expelling the United States from the World Trade Organization in order to revive its paralyzed appeals body.
“The stakes are really high, so it’s worth considering a more radical solution,” she told her. wealth.
“Deep economic impact on the United States”
Hopewell said this attitude was not accidental. Trump has long been seeking to undermine the WTO in support of bilateral deals, and the United States has more leverage.
“Trump is taking a strategy of division and scrambling,” she said. “He knows that the United States is the most powerful when it comes to one-on-one negotiations.”
She believes that by agreeing to bilateral negotiations, foreign governments looking to protect the family industry are undermining themselves. “They are reaching out to Trump’s hand.”
connect wealthThe WTO Secretariat said it had no comment on the actions of its member states. The White House refused to respond.
For many Americans, Trump’s positive trade stance may seem costless. However, the consequences have not yet attracted consumers, in part because industries like automobiles have stocked up before new responsibilities.
“It will take some time to feel the impact of the tariffs at a higher price,” Hopewell said. “But when this hits, it will be a profound economic shock to the United States.”
