President-elect Donald Trump is reportedly considering the declaration of a national economic emergency to facilitate the implementation of his extensive tariff policies, according to four sources privy to the matter.
According to CNBC, such a declaration would empower Trump to establish the tariff program he championed during his campaign for the presidency. This would be made possible through the International Economic Emergency Powers Act, also known as IEEPA. This act grants the President the authority to regulate imports during a period of national crisis.
In the wake of the CNN report on Wednesday morning, stock futures weakened, while the U.S. dollar appreciated against most other currencies. The sources cited by CNN indicated that a final decision has not yet been made regarding whether Trump will declare a national economic emergency. Trump's team is also exploring other legal arguments, such as referencing specific sections of U.S. trade law.
Trump's advocacy for import taxes was a recurring theme on his campaign trail, with calls for tariffs of 60% or more on Chinese goods at times. In the weeks following his election victory, the Republican pledged to increase tariffs on Chinese imports by 10% and impose 25% fees on products originating from Canada or Mexico.
However, The Washington Post reported on Monday that Trump would narrow the focus of his tariffs, a strategy that appears to be favored by Wall Street. Trump later refuted this report. The Trump transition team did not immediately respond to CNBC's request for comment.
While the final decision remains uncertain, the potential declaration of a national economic emergency underscores Trump's commitment to his tariff policies, which were a cornerstone of his campaign. This move could have significant implications for U.S. trade relations and the global economy.
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