The White House has quietly removed the World Trade Organization (WTO) from a list of $4.9 billion in foreign aid cuts announced last Friday, following concerns from lawmakers, trade groups, and WTO leadership. Democratic lawmakers argued that the administration’s proposed cuts were illegal, as Congress had already authorized the funding, while trade groups warned that reducing U.S. contributions to the WTO could allow China to increase its influence within the organization.
WTO Director General Ngozi Okonjo-Iweala indicated that she had been in discussions with the U.S. Trade Representative’s office and others to resolve the issue. The original announcement highlighted $29 million in WTO funding as an example of U.S. contributions deemed inconsistent with President Trump’s “America First” priorities, describing the WTO as “toothless.” By the following Wednesday, the reference to the WTO had been removed from the White House website, and sources confirmed that the funding was no longer slated for cuts, though further details were not provided.
The funding revisions are part of a broader push by the Trump administration to reduce U.S. spending abroad and focus on domestic priorities, following a government-wide review of participation in international organizations completed in August. While both Democratic and Republican administrations have historically criticized the WTO for its limited effectiveness in adjudicating trade conflicts and establishing global trade standards, the announcement initially raised concerns that the U.S. withdrawal could create a vacuum for other countries, particularly China, to fill.
A senior U.S. official noted that the WTO reference was removed from the White House website to avoid confusion, emphasizing that the list referred to previously funded programs rather than new cuts. Questions from Congress and statements from trade groups such as the National Foreign Trade Council highlighted the potential consequences of reduced U.S. funding. Sources also indicated that without specific instructions, U.S. contributions to the WTO could automatically roll over after September 30, as the account allows carryover at the end of the fiscal year.
The administration still owes the WTO contributions for 2024, and the Geneva-based trade organization had an annual budget of 205 million Swiss francs ($232 million) for that year, with the United States responsible for about 11% of the total. The recent adjustments reflect ongoing negotiations and the complex dynamics of U.S. engagement with multilateral trade institutions.
