The European Union, the WTO, and the “Rhetoric of Reaction”

This article examines the European Union’s response to the United States’ challenge to two pillars of the multilateral trading system: the Most Favoured Nation principle and compulsory third-party adjudication. Drawing on Hirschman’s analysis of the “Rhetoric of Reaction”, it argues that the United States has framed its attack to the WTO disciplines through claims of perversity, futility, and jeopardy. Rather than resisting this rhetoric, the European Union has increasingly echoed that discourse. Using the “Liberation Day” tariffs and the ensuing Turnberry “deal” as a test case, the article shows how the European Union moved from its firmer reaction to the 2018 Section 232 measures to a more deferential posture in 2025, including the acceptance of discriminatory tariffs and the decision not to initiate WTO litigation. The article contends that this shift weakens the European Union’s traditional role as a defender of multilateralism, normalizes departures from non-discrimination and dispute settlement, and risks accelerating the erosion of key principles of the WTO legal order.