Question

Are President Trump's tariffs legal bases on the WTO rules? Explain your answer and be specific about possible steps the WTO may take in response.

Answer 1

Yes, there is a legal bases for tariffs . Trump did to protect the US industries from the cheap imports of china . Every country did have level playing fields and also the rules are also not same everywhere.

WTO has rules and regulations which governs the way a country can impose tariffs. Usually the WTO has Most favoured Country clause under which a country has to favour every country equally. Also there is a clause under which a country can impose tariffs to protect their industries. More recent example is imposition of tariff on steel inports by India to protect it's steel industry from cheap imports by foreign countries. Member countries could apoeal to the WTO committee on such issues.

** Kindly write for more clarifications. Up vote if satisfied.