WTO DISPUTE SETTLEMENT UNDER STRESS: ANALYZING THE U.S.-CHINA TARIFF WARS (2018–2024)

This research examines the influence of the tariff war between the U.S. and China (2018–2024) on the working of the World Trade Organisation’s Dispute Settlement Mechanism (DSM). This study applied the Principles of Systematic Reviews, guided by the PRISMA framework, to examine seven peer-reviewed publications and discover the types of challenges that the WTO encounters. It examines important areas such as the increase in trade tensions, the impact of unilateral tariffs on the DSM and the halt in the system due to the Appellate Body crisis. It appears that the WTO suffered from a lack of trust because of the U.S. and China taking unilateral actions. These actions changed the way disputes are settled, as both nations now negotiate with each other and showed the weaknesses of a system based on agreement among all members. Several themes were identified, including issues with the system, needed reforms, unhappiness on the part of the United States, motives and impacts overseas. The study is significant as it would inform policymakers about the institutional weakness of the WTO Dispute Settlement Mechanism, and the urgent need to change it to make sure that the trading system is stable and rule-based. This study is theorised in terms of Realism and Institutions, which help understand the manner states act in multilateral trade arrangements. It has a weakness in its research because the small sample of peer-reviewed publications underlies it, and the diversity of the possible views of the problem may be underrepresented. Nevertheless, the findings can draw practical lessons on how to build more resilient and credible international trade organisations.