Trump Considers National Economic Emergency Using IEEPA to Justify Universal Tariffs on Allies and Adversaries

Jan 8, 2025, 12:26 PM

President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for imposing a broad range of universal tariffs on both allies and adversaries, according to reports from CNN. This move would utilize the International Economic Emergency Powers Act (IEEPA), which allows a president to manage imports during a national emergency. Trump's team is exploring this option as part of his strategy to reset the global balance of trade in his second term. No final decision has been made yet, and Trump's advisers are also evaluating other legal avenues, such as sections 338 and 301 of U.S. trade law, to support the proposed tariffs. The consideration of such an emergency declaration has led to fluctuations in financial markets, with stock futures weakening and the U.S. dollar gaining value against other currencies.