Trump’s White House Backs Off From WTO Funding Cuts After Criticism

Trade groups warned that U.S. withdrawal from organizations such as the WTO would leave a vacuum that other countries would be more than glad to fill.

The White House has excluded the World Trade Organization from the list of entities facing funding cuts after criticism from lawmakers and trade groups.

On Friday, the Trump administration announced $4.9 billion in funding cuts to several international organizations and programs. The Trump administration also labeled the WTO as "toothless" and cited the $29 million in U.S. funding for the organization as an example of U.S. contributions to global programs that did not serve President Donald Trump’s America First objective.

The reference to the WTO is now unavailable from the White House website. According to a Reuters News report, a trade source familiar with the matter confirmed that the WTO funding was no longer being cut, without providing details.

Last week’s cuts followed the conclusion of a government-wide review of U.S. participation in international organizations. The White House has not made the findings of the review public yet.

The report stated, citing a senior U.S. official, that the WTO reference was removed from the White House website to avoid confusion. It was in reference to programs that have been funded in the past, not the ones facing funding cuts.

Trade groups, such as the National Foreign Trade Council, had warned that U.S. withdrawal from organizations such as the WTO would leave a vacuum that other countries would be more than glad to fill, hinting at China.

Retail sentiment on Stocktwits about the SPDR S&P 500 ETF Trust (SPY) was in the ‘bullish’ territory at the time of writing.

Trump is currently seeking to overturn a decision by an appeals court that ruled his tariffs invalid, citing that the power to impose such reciprocal levies rests with Congress. The Justice Department has appealed to the Supreme Court for an urgent hearing.

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