Donald Trump is in danger of losing his favorite trade weapon.
The president argues he is allowed to impose tariffs on other countries’ steel and cars because they pose a threat to America’s “national security,” but that position appears increasingly hard to justify after a bombshell ruling set to be adopted at the World Trade Organization on Friday.
The Geneva-based body will set a very high bar for countries to invoke the controversial Article 21 “national security” justification to impose trade restrictions. Although the decision refers to a Russia-Ukraine border dispute, the implications are likely going to be much wider since it’s the first time the WTO has ruled on the powerful security clause.
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