Tariffs shape global trade, impacting economies and legal frameworks. The U.S. under Trump imposed new tariffs on China, Canada, and Mexico, citing security concerns. This has led to retaliatory measures, raising legal challenges under WTO rules and disrupting commerce.

The WTO evolved from GATT to better address global trade challenges, expand trade rules to services and intellectual property, and establish a stronger dispute resolution system, ensuring fairness and predictability in international trade.

Trade disputes arise when nations disagree on trade rules or practices. The WTO resolves these disputes through its Dispute Settlement Mechanism, guided by the DSU. This structured process ensures fairness, predictability, and compliance with trade agreements.