In the past five months Donald Trump has delivered the largest shock to the rules-based international trading system since its emergence in the aftermath of the Second World War. This disruption stems from the sheer size of the tariff increases the president has imposed. The average tariff rate for the world’s largest importer rose from 2.5 per cent in 2024 to 28 per cent in early May and was still at 17.8 per cent after bilateral deals with Britain and China reduced or temporarily paused some increases.
It also reflects the high degree of uncertainty created by the president’s decision to ignore relevant multilateral World Trade Organization (WTO) rules, as well as the United States’ 20 existing bilateral free trade agreements, and to treat allies as harshly as strategic competitors.
What will global trade look like after the chaos of Trump’s tariffs?
The system that prevailed before the recent shocks is gone forever. A new vision for world trade is possible, but it will require fresh thinking and collective leadership from the European Union and others, says Creon Butler.
The World Today
Published 9 June 2025
Updated 4 September 2025 — 5 minute READ
Image — Traders work on the floor of the New York Stock Exchange moments before President Trump announces sweeping tariffs on 2 April. It is unclear whether market reactions will constrain Trump’s continuing tariff campaign. Photo: Spencer Platt/Getty Images.
