Trump could declare emergency to justify tariffs - report

(Sharecast News) - US president-elect Donald Trump is exploring the option of declaring a national economic emergency to justify implementing a broad new tariff programme, it emerged on Wednesday, according to a report from CNN. Citing sources familiar with the discussions, CNN said that if enacted, the measure would use the International Economic Emergency Powers Act (IEEPA) - a law granting presidents wide authority to regulate imports during emergencies - to sidestep traditional requirements for proving national security threats.

It said that while no final decision had been made, Trump's advisors were apparently also evaluating other legal tools, including sections 301 and 338 of US trade law, to impose or adjust tariffs.

Section 338 would permit tariffs in retaliation against countries deemed to discriminate against US commerce, though it had not been used in modern times.

The potential emergency declaration echoed Trump's 2019 threat of tariffs on Mexican imports, which leveraged IEEPA during a border-related emergency.

Although those tariffs were never implemented after a deal was struck with Mexican officials, the move faced pushback from prominent business groups who questioned its legality.

CNN said Trump's advisors and supporters argued the proposed tariffs were critical for revitalising domestic industry and protecting national security.

However, critics pointed to the economic strength Trump had also acknowledged in recent remarks, casting doubt on the justification for an emergency declaration.

Trump recently touted the economy's resilience while criticising inflation, and predicting strong growth during his term.

Reporting by Josh White for Sharecast.com.