Trump Mulls National Economic Emergency Declaration for Tariff Program

US President-elect Donald Trump is reportedly considering declaring a national economic emergency to justify imposing universal tariffs on imports.

According to sources familiar with the matter, Trump aims to use the International Economic Emergency Powers Act (IEEPA) to implement a new tariff program, which includes a 10% tariff on global imports, 60% on Chinese goods, and 25% on Canadian and Mexican imports.

Economic Justification and Potential Impact

Wolfe Research economist Stephanie Roth discussed the potential implications of this move. “The declaration of a national economic emergency would grant the president broad authority to manage imports during a crisis,” Roth explained. She added that such a measure could significantly impact global trade dynamics and the U.S. economy.

President-elect Trump is reportedly considering declaring a national economic emergency to justify universal tariffs.

Wolfe Research economist Stephanie Roth discusses: pic.twitter.com/6MdeSQ7UQm

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Legal and Political Ramifications

The Trump transition team has not commented on the report, but sources indicate that the discussion over declaring a national emergency is ongoing.

“Nothing is off the table,” a source familiar with the matter told CNN. The move would allow Trump to bypass traditional legislative processes and implement tariffs unilaterally, a strategy he has favored in the past.

Historical Context and Precedents

In 2019, Trump used the IEEPA to threaten a 5% tariff on all Mexican imports, which would have increased to 25% if Mexico did not take action to reduce undocumented immigration.

Although the tariffs were never implemented, the threat led to significant negotiations and policy changes. This historical precedent highlights the potential effectiveness of using the IEEPA to achieve policy goals.

Expert Opinions and Criticisms

While some experts believe that the president has broad authority to impose tariffs for various reasons, others are concerned about the potential economic fallout.

“IEEPA is certainly one of the statutory bases to impose tariffs, but it comes with significant risks,” said Kelly Ann Shaw, a trade attorney who served as Trump’s deputy assistant for international economic affairs. Critics argue that such measures could lead to retaliatory tariffs from other countries and disrupt global supply chains.

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