IN BRIEF:
❓What Happened: The United States has halted its payments to the World Trade Organization as part of President Trump’s effort to curb international spending.
👥 Who’s Involved: President Donald Trump, U.S. delegates to the WTO, WTO officials, and trade representatives.
📍 Where & When: Geneva; the funding pause began in early 2025, with arrears building since late 2024.
💬 Key Quote: “Generally, arrears can impact the operational capacity of the WTO Secretariat… [we] have plans in place to operate within the financial limitations imposed by any arrears.” — WTO spokesman Ismaila Dieng
⚠️ Fallout: The U.S. now owes over $25 million, is in “Category 1 arrears,” and has lost privileges such as presiding over WTO bodies. The WTO is quietly preparing contingency plans.
🔎 Why It Matters: This deepens the Trump administration’s retreat from global institutions and could weaken the WTO’s ability to manage global trade disputes if prolonged.
IN FULL:
According to sources, the United States has frozen its financial contributions to the World Trade Organization (WTO). The payments have been suspended pending a review of Washington’s support for international organizations.
The freeze aligns with President Donald J. Trump’s America First policy agenda. During his first term, Trump attempted to reform the WTO alongside Japan and the European Union. Now, his administration appears intent on sidelining the Geneva-based body by cutting off funding entirely.
The U.S. was expected to contribute around 11 percent of the WTO’s $232 million annual budget. However, as of December 2024, under the former Biden-Harris regime, Washington already owed around $25.7 million.
Due to the unpaid dues, the United States has been downgraded under WTO rules. This means its representatives can no longer chair WTO bodies or access certain official documents.
The WTO’s spokesman, Ismaila Dieng, confirmed that the Secretariat is managing resources prudently and preparing contingency plans for continued financial pressure. However, if the pause in U.S. contributions persists, it could have broader consequences for the organization’s operational capacity.
“The Secretariat continues to manage its resources prudently and has plans in place to operate within the financial limitations imposed by any arrears,” Dieng said.
The White House and the U.S. mission in Geneva have yet to publicly acknowledge the funding freeze. However, sources familiar with a private WTO budget meeting held on March 4 said the U.S. delegation provided no timeline for a final decision. If left unresolved, the U.S. funding gap could further destabilize the WTO. The administration is also pushing to withdraw from the World Health Organization (WHO) and has slashed support for multiple other international bodies.