What happens next after Trump tariffs ruled illegal

The ruling, implications and what lies ahead

The Trump tariffs on steel and aluminum imports from Mexico and Canada have been ruled illegal by a World Trade Organization panel. The decision could impact billions of dollars in trade and has far-reaching implications for the US and its allies. What comes next?

Potential consequences for the US

While the ruling has yet to directly impact trade, it could invoke retaliatory measures from affected countries. Furthermore, other countries may use this ruling as a reference for challenging their own disputes, leading to a complex web of trade implications.

Potential consequences for allies

The ruling has broader implications for US allies and trade partners. They must now navigate the challenges of participating in a tariff regime that is deemed illegal under international trade law. Moving forward, they will likely be forced to decide whether to continue with retaliatory tariffs or risk non-compliance with WTO rules.