The move, led by President Donald Trump, has triggered market turmoil, wiping an estimated $29 trillion off global markets and fuelling fears of a looming global recession.

China, the world’s second-largest economy, has borne the brunt of the US measures. Labelling the US tariffs “baseless” and destabilising, Beijing lodged a formal complaint with the World Trade Organisation (WTO).

In retaliation, the US increased tariffs on Chinese imports by 50%, prompting China to raise its duties to 84%. A 90-day pause in tariff hikes failed to de-escalate tensions, as both sides raised tariffs again on Friday to 125%.

Trade Expert Viwe Ntshongwana says the WTO’s ability to intervene hinges on the willingness of member states, particularly powerful ones like the US, to adhere to its authority. “Their power is only as strong as the members’ willingness to submit to it,” Ntshongwana told Channel Africa.

The WTO’s mandate includes ensuring fair treatment under the Most Favoured Nation principle, preventing countries from discriminating against others in their tariff regimes. Yet, with the US moving swiftly and aggressively, many nations are struggling to keep pace.

Senior Economist Thabile Nkunjana of South Africa’s (SA) National Agricultural Marketing Council acknowledged that some level of protectionism is permitted under WTO rules, particularly to support domestic sector growth, but emphasised the need for clear timeframes and eventual liberalisation.

As trade instability grows, questions are being raised about the United States’ reliability as a trading partner. “If the US is no longer seen as a stable trade actor, who fills that void?” asked Nkunjana, stressing the importance of renewed diplomacy.

SA President Cyril Ramaphosa has called for a reform of the WTO to better integrate developing countries into global trade, advocating for policies that allow them the space to industrialise and address domestic priorities.

--ChannelAfrica--