Trump eyes economic emergency to push new tariff agenda
President-elect of the USA, Donald Trump, is considering declaring a state of emergency in the national economy to provide legal justification for implementing a series of widespread tariffs, CNN reported on Wednesday, citing sources familiar with the matter.
Such a move would allow Trump to develop a new tariff program using the International Emergency Economic Powers Act, known as "IEEPA."
This law grants the President of the United States broad authority to impose economic restrictions during emergency situations that may threaten national security.
CNN's editorial team notes that they contacted Trump's transition team about the matter but had not received a response by the time of publication.
Donald Trump has already used this act
As early as 2019, Donald Trump used the "IEEPA" act to impose sanctions on Iran. In the context of escalating tensions with Iran, especially after the US withdrew from the 2015 nuclear agreement, the Trump administration decided to strengthen economic sanctions aimed at limiting Iran's ability to finance its nuclear program and military activities in the region.
He also threatened Mexico with a 5% tariff on all imports, which could rise to as much as 25% if Mexico did not take action to reduce the number of illegal immigrants crossing the border into the United States.
After Mexican officials went to Washington for a week of negotiations, an agreement was reached to restore immigration policy. However, the tariffs were never implemented.
