It's official: Trump's trade war with China is now an unmitigated, farcical disaster - Business Insider

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It's official: Trump's trade war with China is now an unmitigated, farcical disaster - Business Insider
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Opinion | It's official: Trump's trade war with China is now an unmitigated, farcical disaster. By lopezlinette

The World Trade Organization just ruled that the Trump administration's trade war with China violates the body's trade rules — rules the US helped to design.But add the fact that the US trade deficit surged to its highest level in 12 years this summer, and the fact that China isn't meeting its purchasing targets, and that China hasn't made any structural changes to its economy and well...This is an opinion column. The thoughts expressed are those of the author.

There isn't just one reason, of course, but this week we witnessed the coup de grace. The World Trade Orginization — a body the US once helped design —ruled that Trump's initial salvo of tariffs on Chinese goods were in violation of WTO rules. Symbolically this ruling crystalizes the fact that this trade war was a breach of the US's own principles.

Practically, though, this ruling will mean little to the administration. Trump and his staff will continue to pretend as if negotiations are ongoing, and that progress is being made. But the data doesn't bear that out. In July the US trade deficit — the measure Trump claimed he was going to narrow by waging this trade war —Then there's the Phase One trade agreement the US and China made.

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