It won't be that easy for Trump to negotiate leaving the WTO
Any attempts by Trump to withdraw from the WTO would require an act of Congress
You'd think it'd be impossible. You'd think it'd be unimaginable. You'd think it'd be out of this world. But hey, it's Donald Trump. Get used to it. It's a bizarre world we live in, but what a time to be alive really.
It's nothing new that Trump has been a critique of the WTO, but to push for the US to leave the organisation and throw global trade into limbo? That's something new.
The good news for global trade and investors is that this is likely if not almost certainly not going to happen. While Trump may go forward with notifying the WTO that the US wants to leave, it's not as straightforward.
The Axios report earlier says that 'US law implementing the WTO agreements state that any withdrawal requires an act of Congress'.
Trump would encounter significant impediments in trying to push through with such an arrangement and it would be extremely difficult to envisage Congress backing Trump on such an ordeal.
While we may be hearing more of this in the coming days/weeks maybe, the possibility of it escalating into global trade being thrown into complete disarray and economic pillars around the world starting to collapse is extremely minute.
The market has done right so far with all things trade-related, and that is to fade it. This time would be no different.