The GATT and its successor, the WTO, were established to lower trade barriers

The General Agreement on Tariffs and Trade and its successor, the WTO, was formed to reduce trade barriers between nations.

The WTO is the global body that sets and enforces the rules of international trade

Founded in 1995, with 164 member countries, the WTO negotiates trade agreements, resolves disputes between nations, and aims to reduce barriers to international commerce.

Global trade volume is roughly 45 times what it was when the General Agreement on Tariffs and Trade was founded

Since 1950, world trade values have grown nearly 410 times, mainly due to the successive tariff reductions negotiated under GATT and the WTO.

The history of the World Trade Organization

This episode of the "Brettonomics with Nancy Jackson" podcast explores the history of the WTO and its predecessor, the GATT, revealing the key people, negotiations, and decisions that shaped today's international trade rules.

China joined the WTO in 2001

After 15 years of negotiation, China joined the WTO as the 143rd member. This move gave it access to the global market in exchange for commitments to economic liberalization, despite skepticism from existing members about integrating a state-controlled economy into a free-market system.

China's WTO membership produced significant disputes

Two decades after China joined, its trade practices—such as state subsidies, intellectual property disputes, and market access restrictions—have sparked accusations that it has not fully met WTO commitments of free and open trade.

Trump's 2025 tariffs represent a significant break from the rules-based trade order

The Trump administration imposed broad tariffs on other countries outside WTO rules in 2025, claiming that those countries had long violated trade agreements and that the US was simply leveling the playing field.

The WTO's dispute settlement system has been effectively paralyzed

The US has blocked appointments to the WTO's appellate body since 2017, arguing that the panel has overstepped its mandate. Without a functioning appeals court, the WTO can no longer enforce rulings or settle disputes.

The G20 emerged from the 1997 Asian financial crisis as a forum for managing the global economy

Established in 1999 and elevated to a leaders' summit during the 2008 financial crisis, the G20 now unites the world's largest economies to address issues that the Bretton Woods institutions were not designed to manage.

Listen to a podcast episode that outlines 250 years of world trade history.

A trade war is an economic conflict where nations impose tariffs or other trade barriers on each other in retaliation for similar actions.

The Bretton Woods conference in 1944 created the foundations of the modern global economy

In July 1944, 44 nations gathered in Bretton Woods, New Hampshire, to create a new postwar economic order. The conference led to the creation of the IMF and the International Bank for Reconstruction and Development—now known as the World Bank.

Tariffs once fueled the US economy, historically serving as a primary source of revenue and a means to protect domestic industries.

The US apparel and textile industry was long set up to limit competition from nations in the developing world—but shifts in international trade regulation in the 1990s changed that, paving the way for the fast fashion industry to develop.

The history of tariffs stretches back to ancient Rome and Greece, where taxes were levied on imported grain and textiles to control trade.

Critics argue that the World Bank, IMF, and WTO were designed to serve Western interests

Some analysts from developing nations argue that the Bretton Woods institutions were designed to reinforce Western economic dominance rather than to promote fair development for poorer countries. Supporters respond that these institutions have improved living standards worldwide.

The treaty that ended the First World War laid the groundwork for the Second.

The Smoot-Hawley Tariff Act—which was passed during the Great Depression with the goal of reviving domestic industry—is among the most famous pieces of economic legislation in US history.

The World Bank, IMF, and WTO all face calls for structural reform

Researchers argue that all three major institutions face legitimacy and effectiveness challenges, including outdated governance structures, unequal voting power, and difficulty adapting to a more multipolar world.

Trade between the US and China has significantly increased in recent decades.

The failures of the interwar period made the case for a new international system

After World War I, countries devalued their currencies, raised tariffs to block imports, and seized territory unchecked, with the international community unable to organize effectively to stop them. The result was a global depression and, eventually, another world war.

Policymakers make complex trade-offs when considering tariffs—while they can generate government revenue and encourage the consumption of locally produced goods, they can also lead to higher consumer prices and may negatively impact economic growth.

Track how American tariffs have impacted different countries and industries.

Since World War II, formal declarations of war and peace treaties have become increasingly rare, replaced by cease-fires, authorizations of force, and "special military operations."

Relationships between countries have become more peaceful since the rules-based order was established

Our World in Data monitors bilateral relationships on a spectrum from open rivalry to "positive peace"—deep cooperation and mutual protection. In 1945, no countries had highly cooperative security relationships. Today, nearly a fifth do.

An economic evaluation of US tariffs

Most economists agree that the implementation of large-scale tariffs on foreign goods would hurt both the American and global economies. This video from The Wall Street Journal explains the rationale for tariffs as a tool for domestic job creation, but explains why they may hurt the overall economy.

Read an overview of US tariff policy before the second Trump Administration

This comprehensive report from the Congressional Research Service explores the evolving role of tariffs—from a major source of government revenue to a tool for trade and foreign policy—providing insights into current practices, legal foundations, and global trade dynamics.

How do tariffs work?

This brief animated video from Time walks through a simple example of a tariff on a single good, illustrating how this would affect the market for the good—both domestically and abroad—and who would eventually bear the cost of the tariff.

Behind the scenes on tariff politics

Economist Gene Grossman joined the Trade Talks Podcast to discuss why tariffs really happen. The episode digs into how voters, politicians, lobbyists, and even campaign cash can affect when protectionist trade policies are put forward. Produced in 2019, the podcast also discusses how populist trade policies and identity politics accounted for Donald Trump’s victory in the 2016 Presidential election.

A UN-led treaty may establish rules to phase out plastic globally

With support from more than 175 nations, a treaty led by the United Nations is being negotiated to establish enforceable global rules for plastic production and pollution by 2025. Negotiations come as the total amount of plastic in the ocean has increased by 50% from 2017 to 2022.

Commodity trading is regulated by the CFTC to mitigate fraud and risk

Established in 1974, the CFTC regulates these markets (including swaps, futures, and certain types of options) to protect market participants from fraud, ensure fair trading conditions, and generally reduce financial risk.

The Tariff Act of 1789 was one of America's first acts.

See a chart showing how US tariff revenue has grown in recent years.

Tariffs are typically paid by the importing company or organization to the US Treasury.

Some scholars consider the Bretton Woods system one of the best foreign policy decisions in US history

A survey of historians by the Council on Foreign Relations ranked the creation of the Bretton Woods system among the top 10 foreign policy decisions in US history, highlighting its role in establishing postwar stability, prosperity, and decades of economic growth.

View when each UN member signed the Montreal Protocol

Adopted in 1987 to phase out ozone-depleting substances, the agreement achieved universal ratification by all 197 UN member states, making it the first and only such international treaty in the UN's history.

Tariffs are taxes levied on goods imported from abroad.

Over-the-counter markets are used to bypass traditional exchanges while trading

Commodities are regularly traded via OTC markets so that buyers and sellers can bypass central exchanges and negotiate terms more directly. Before the advent of formal exchanges, most assets were traded OTC.

The League of Nations was the predecessor to the UN—and the US never joined

The League of Nations—established in 1920 after World War I—was the first global organization aimed at maintaining world peace. Although US President Woodrow Wilson championed its creation, the United States never joined.

NATO was formed in 1949 to deter Soviet expansion, prevent European militarism, and encourage political integration.

The Concert of Europe was an earlier attempt to manage great power relations through shared rules

After the Napoleonic wars, European powers established a system of regular consultation to manage conflicts and maintain the balance of power. It offered relative stability for nearly a century before deteriorating.

Adam Smith’s 'The Wealth of Nations' introduced concepts like division of labor, productivity, and free markets

Published in 1776, "The Wealth of Nations" is an influential economic work that laid the foundation for modern economic theory. Smith argued for limited government intervention and touted the benefits of self-regulating markets.

The 1941 Atlantic Charter was a World War II alliance and model for the UN

The Atlantic Charter was a pivotal 1941 agreement between Franklin D. Roosevelt and Winston Churchill, outlining shared goals for a post-World War II world rooted in freedom and self-determination. These ideals later inspired the founding principles of the United Nations.

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

Auto and consumer goods companies absorbed billions in costs due to President Trump's 2025 tariffs.

The IMF was created to prevent the currency crises that destabilized the 1930s global economy

Founded in 1945, the IMF monitors exchange rates, promotes financial stability, and provides emergency funding to countries that cannot pay for their imports. It currently has 191 member countries and acts as a lender of last resort for struggling economies.

The international trademark framework is called the Madrid Protocol

Trademarks vary from country to country, but an agreement called the Madrid Protocol allows trademark protections across more than 100 participating countries. While the Madrid Protocol expands trademark access, it doesn't necessarily grant blanket protections across the participating countries, meaning each country is still in charge of its own trademark enforcement.

The history of the Montreal Protocol, the only universally ratified treaty in UN history

Mario Molina and F. Sherwood Rowland discovered that chlorofluorocarbons released chlorine atoms that could break down molecules making up the protective ozone layer. Despite attempts to discredit scientists and economic concerns raised by politicians, the agreement to phase out ozone-depleting substances was signed in 1987.

The Clean Water Act became the national standard for protecting American waters

Enacted in 1972, the Clean Water Act grants the Environmental Protection Agency the authority to regulate pollutant discharges, establish water quality standards, and oversee water pollution controls. Its scope has narrowed due to recent Supreme Court rulings.

The US used military pressure to force Japan to open to foreign trade in the 1850s

Commodore Matthew Perry arrived in Edo Bay (now Tokyo Bay) with heavily armed warships, pressuring Japan to open its ports. His expeditions led to the 1854 Treaty of Kanagawa, which opened two ports for supplies and established formal US-Japan relations. Full commercial trade followed later under the 1858 Harris Treaty.