The United States has halted its financial contributions to the World Trade Organisation (WTO), currently headed by Nigerian economist Dr. Ngozi Okonjo-Iweala, according to a report by Reuters citing three trade sources.
This move, driven by President Donald Trump’s administration, is part of a broader plan to reassess U.S. involvement in global institutions perceived to conflict with the country’s “America First” policy.
The WTO, a Geneva-based international trade watchdog, had a projected 2024 budget of 205 million Swiss francs (approximately $232 million). Based on its share of global trade, the U.S. was expected to contribute around 11% of that amount. However, both the 2024 and 2025 U.S. budget allocations for the WTO have now been frozen pending a full review.
According to insiders with direct knowledge of recent meetings, the United States has not yet formally communicated its final decision to the WTO, but a notification is expected at an unspecified later date. All three sources, who requested anonymity due to the confidential nature of the discussions, confirmed that the WTO is already working on a “Plan B” to manage its finances in case the U.S. suspension continues.
The decision aligns with the Trump administration’s ongoing efforts to scale back involvement in multilateral organisations. The White House has previously taken steps to exit the World Health Organisation and cut funding to various international bodies deemed inconsistent with American strategic interests.
Last month, a State Department spokesperson confirmed that President Trump signed an executive order instructing Secretary of State Marco Rubio to conduct a 180-day review of all international organisations the U.S. participates in.
Neither the White House nor the State Department has issued an official comment on the WTO funding pause.
Dr. Ngozi Okonjo-Iweala, the first African and first woman to serve as Director-General of the WTO, has yet to respond publicly to the U.S. decision. Analysts say the move could significantly impact the WTO’s financial stability and the global trade system, especially if other major contributors follow suit.
