Tariffs have been a key issue in the recent presidential campaign, with former President Trump and President Biden both using them in their diplomatic efforts. Trump threatened French wines with a 100% tariff, prompting Macron to back down, while Biden imposed tariffs on Russian imports after the invasion of Ukraine. These actions, while effective in achieving specific goals, went against America’s promises under the World Trade Organization treaty.
The use of tariffs raises questions about when it is permissible for the US to break international trade agreements, and who should make that decision. The WTO was created to prevent trade wars and resolve disputes in a fair manner, but both Trump and Biden acted unilaterally to address immediate concerns.
France could appeal Trump’s wine tariff to the WTO, while Biden’s tariff on Russia could also be challenged. In both cases, the US may eventually lose, but the immediate impact on the targeted countries was significant. Trump did not seek approval from Congress for his actions, while Biden had their support.
Breaking international commitments should be done sparingly and constitutionally to maintain credibility. The decision to use tariffs should involve careful consideration of the consequences and adherence to established procedures. Tom Campbell, a law and economics professor at Chapman University, highlights the importance of upholding America’s word and utilizing international dispute resolution mechanisms.
Source
Photo credit www.dailynews.com