The proliferation of unilateral trade measures and the crisis of the multilateral trading system

Abstract Following President Trump’s assumption of office at the start of the year, he introduced a series of tariff measures. These unilateral trade actions, especially the reciprocal tariffs, could have profound and far-reaching consequences, potentially undermining the very foundations of the multilateral trading system. This is due to their direct challenge to the Most-Favoured-Nation (MFN) principle, a cornerstone of the World Trade Organization (WTO). Additionally, the unilateral trade measures imposed by the USA have triggered follow-up actions from other nations, resulting in reciprocal countermeasures. It is critical to determine how to respond to reciprocal tariffs in a manner that preserves the integrity of the multilateral trading system. Special attention must be given to the creation of a complex network of bilateral agreements, formed through bilateral consultations after the implementation of US reciprocal tariffs, which may indirectly weaken the multilateral framework.