Trump may declare a national economic emergency to justify universal tariffs, CNN reports
US President-elect Donald Trump delivers remarks at Mar-a-Lago in Palm Beach, Florida, US on January 7, 2025.
Carlos Barria | Reuters
President-elect Donald Trump is considering declaring a national economic emergency to implement its sweeping tariff policy, four sources familiar with the matter told CNN.
A declaration of this nature will give Trump the authority to create the tariff program he made a highlight of his campaign for the White House through the International Economic Powers Act, CNN reported. Also known as IEEPA, the law allows the president to oversee imports during a period of national crisis.
Stock futures weakened after CNN’s report on Wednesday morning, and the US dollar gained against most other currencies.
CNN’s sources noted that no final decision has yet been made on whether Trump will declare a national emergency. Trump’s team is also evaluating alternative legal arguments, such as pointing to specific parts of US trade law, according to CNN reports.
Trump’s transition team did not immediately respond to CNBC’s request for comment.
Trump often proposed taxes on imports during the campaign, inviting sometimes for fees of 60% or more on Chinese products. Weeks after his victory, the Republican he vowed increase tariffs on imports from China by 10% and impose duties of 25% on products coming from Canada or Mexico.
The Washington Post reported on Monday that Trump will narrow the focus of his tariffs, an approach that appears to favor Wall Street. But the newly elected president later denied the report.
