Trump considers national emergency declaration to push for universal tariffs
US President-elect Donald Trump is considering declaring a national economic emergency as a legal basis for imposing a broad set of universal tariffs on both allies and adversaries, multiple sources familiar with the matter told CNN on Wednesday. This move would aim to reset global trade relations during his second term.
The national emergency declaration would allow Trump to leverage the International Economic Emergency Powers Act (IEEPA), a law granting the president wide-ranging authority to manage imports during a declared emergency. Sources indicated that Trump is particularly drawn to IEEPA because it offers significant flexibility in imposing tariffs without the need to justify them on national security grounds.
One source close to the situation said, “Nothing is off the table,” acknowledging the ongoing discussions about the declaration. The Trump transition team did not respond to CNN’s request for comment.
In 2019, Trump previously invoked IEEPA when threatening a 5 per cent tariff on Mexican imports, which could rise to 25 per cent unless Mexico took action to reduce undocumented immigration. Although the tariffs were never imposed after negotiations resulted in an immigration agreement, the potential tariffs sparked legal challenges from business groups like the Chamber of Commerce.
While no final decision has been made regarding the emergency declaration, Trump’s team is exploring other legal avenues for supporting the tariffs proposed during his campaign. Kelly Ann Shaw, a former deputy assistant for international economic affairs, remarked, “IEEPA is certainly one of them,” adding that Trump has broad authority to impose tariffs under various legal provisions.
Advisers are also considering Section 338 of US trade law, which allows the president to impose new tariffs against countries that discriminate against US commerce. Additionally, Trump’s team may revisit Section 301, the law used to implement tariffs on China based on national security grounds. Although the Biden administration largely maintained these tariffs, Trump could adjust or expand them as needed, though such moves would typically require government investigations and lobbying from affected companies.
If Trump opts for a national economic emergency, it is unclear what specific evidence he would present. In a recent press conference, he acknowledged the strong US economy, while emphasising his confidence in the country’s future economic growth, despite concerns over inflation.
Supporters of the tariffs argue they are crucial for revitalising US manufacturing. Nick Iacovella, Senior Vice President of the Coalition for a Prosperous America, stated, “The Trump team understands we have to rebuild our industrial capacity for economic and national security, and it will be good for communities and American workers,”
Attribution: CNN
