The recent escalation of tensions between the US and its trading partners has led to a significant decline in global stock markets. This downturn is largely attributed to the imposition of retaliatory tariffs by countries such as China, Europe, and Mexico. These measures have resulted in increased costs for American businesses, passed on to consumers through higher prices.The effects of these trade tensions are far-reaching, with many industries facing significant challenges. The global economic growth has been affected, with some projections suggesting a slowdown in the coming quarters. It is essential to consider the long-term implications of such actions and explore alternative solutions to resolve disputes.The World Trade Organization (WTO) plays a crucial role in resolving trade disputes between nations. Its dispute settlement mechanisms aim to provide a fair and transparent process for addressing grievances. However, its effectiveness in preventing or mitigating the effects of retaliatory tariffs remains questionable.