According to media reports on January 8 (editor Zhao Hao), four informed sources revealed that USA President-elect Donald Trump is considering announcing a national economic emergency to provide a legal basis for imposing high and widespread tariffs on other countries.

As of the time of this report, Trump's Social Media account has not commented on this news, and the latest post is still about 'annexing Canada.'

It is reported that a national economic emergency would allow Trump to utilize the International Emergency Economic Powers Act (IEEPA) to develop a new tariff plan, as this act can unilaterally authorize the president to manage imported goods during a national emergency.

One source pointed out that Trump is particularly fond of this law because it grants broad jurisdiction over the implementation of tariffs and does not impose strict proof requirements regarding whether the tariffs relate to National Security.

Another source familiar with the matter stated, 'Nothing is impossible.' He acknowledged that there has indeed been intense discussion within Trump's transition team regarding whether to declare a national emergency.

In 2019, Trump threatened to impose a 5% tariff on all imports from Mexico during his first term, claiming that the tariff would rise to 25% if Mexico refused to take action to reduce the number of illegal immigrants crossing the USA border. At that time, USA and Mexican officials reached an agreement after a week of face-to-face negotiations, ultimately preventing the tariff from being enacted.

However, with Trump returning to the White House, speculation has arisen about whether he might take similar actions. Two months ago, Trump confirmed on his Social Media platform that he might mobilize USA troops to deport illegal immigrants.

Sources told the media that Trump's team has yet to make a final decision on whether to declare a National Emergency, as they are still exploring Other legal avenues to support the tariff policies promised by Trump during the campaign.

Trade attorney Kelly Ann Shaw, who served as the Deputy Assistant for International Economic Affairs in Trump's first administration, stated, "I believe the president has broad powers to impose tariffs for various reasons, and there are several statutory bases for doing so, with IEEPA being certainly one of them."

Reports indicate that among the options evaluated by Trump's advisors is the possibility of using Section 388 of the Trade Act, which allows the U.S. president to impose "new or additional tariffs" on countries that discriminate against American products. They are also considering the possibility of using Section 301.

However, these regulations would require the Office of the United States Trade Representative (USTR) or the United States International Trade Commission (ITC) to conduct an investigation. Compared to these options, "entering a National Economic Emergency" would allow tariffs to take effect quickly.

At a press conference on Tuesday, Trump stated that he inherited an economy in distress from the Biden administration, but in the next four years, "the USA will take off like a rocket ship. In fact, it is already doing so."

Editor/lambor