Charles Hankla does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. Not too long ago, President Donald Trump seemed to be on the cusp of a trade deal with China. A couple of threatening tweets and an escalation of tariffs later, the odds of ending the month-old U.
I am a specialist in the politics of trade.
My observations lead me to believe that the increasing abandonment of multilateralism will have pernicious long-term consequences. Not only will trade become more costly for businesses and consumers, it may even make the planet a more dangerous place. Before we can understand what has changed, we need to revisit how trade deals have historically been done. This multilateral trading order reached its heyday in , with the creation of the World Trade Organization.
But more recently, the system has weakened. Trump has shown little appetite for continuing the multilateral negotiations his predecessors were working on. But Trump has added a level of confrontation and antagonism to world trade not known in the postwar era. For evidence, look no further than his use of threats during the recent trade talks and his decision to raise tariffs on hundreds of billions of dollars of Chinese goods on May 10, which is expected to prompt retaliation from China.
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