Trump mulls economic emergency declaration

Trump considers national economic emergency to justify universal tariffs on imports.

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WASHINGTON:

US President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing unnamed sources familiar with the matter.

The move will allow Trump to build a new tariff program by using the International Economic Emergency Powers Act (IEEPA), which authorizes a president to manage imports during a national emergency, the report said.

"Nothing is off the table," a source familiar with the matter told CNN, acknowledging that a discussion had taken place over declaring a national emergency. The Trump transition team did not immediately respond to a Reuters request for comment.

A national emergency declaration under IEEPA has long been considered as a key legal tool that Trump may invoke to take quick action on his campaign promise to impose a universal tariff of at least 10% on all imports into the US.

Three weeks after his election in November, Trump said on social media that immediately after his Jan. 20 inauguration, he would sign "all necessary documents" to begin charging Mexico and Canada 25% tariffs unless illegal immigration and fentanyl trafficking is halted. Trade experts view that action as likely involving an IEEPA emergency declaration.

Trump invoked IEEPA in 2019 for a similar 5% tariff threat against Mexican imports over illegal immigration, which was withdrawn after Mexico agreed to tighten border security and hold migrants on its territory.