Economic reports and analysis from the U.S. Department of Commerce and independent economic analysis firms

Trump Considers National Economic Emergency Using IEEPA for Universal Tariffs in Second Term

Jan 8, 2025, 11:36 AM

President-elect Donald Trump is considering declaring a national economic emergency to implement a new tariff program, according to four sources cited by CNN. The move would allow Trump to use the International Economic Emergency Powers Act (IEEPA) to impose broad, universal tariffs on both allies and adversaries, aiming to reset global trade dynamics in his second term. Trump's team is exploring various legal avenues to support these tariffs, including revisiting previous trade laws used for imposing tariffs on China. The consideration of an emergency declaration follows Trump's previous use of IEEPA in 2019 to threaten tariffs on Mexican goods, a move that was upheld by courts. No final decision has been made yet on whether to proceed with the emergency declaration, but the legal justification for such action is being thoroughly evaluated.