The Financial Times points out that if such a lawsuit were to take place, Trump would lose it. And if it Trump were to ignore the lawsuit ruling at the World Trade Organization, the result would be a trade war.
According to Chad Bown, an expert on WTO trade disputes at the Peterson Institute for International Economics, were the US to lose a case such as the border tax — as many experts think it would — it could lead to some $385bn a year in trade retaliation against the US. That would be almost 100 times greater than the largest WTO finding. Should the US ignore a WTO ruling, as Mr Trump has threatened in the past, it could lead to the unravelling of a system designed to prevent trade wars.
The idea of the border tax is being pushed by Republican House Speaker Paul Ryan. Trump has only mentioned it, but he has not endorsed it yet.
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