Trump mulls emergency powers for sweeping economy tariffs
CNN reported on Wednesday, citing sources familiar with the matter, that the 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.
This move would allow Trump to develop a new tariff programme using the International Emergency Economic Powers Act, or IEEPA.
This law grants the President of the USA broad authority to impose economic restrictions during emergencies that may, for instance, 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 programme and military activities in the region.
He also threatened Mexico with a 5 per cent tariff on all imports, which could rise to as much as 25 per cent 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.
