US President-elect Donald Trump is considering preaching financial emergency nationally to give him the legal ability to impose a “broad package of blanket tariffs” on allies and adversaries, CNN reported Wednesday, citing four sources with knowledge of the matter.

Trump has repeatedly threatened to impose tariffs, including on the European Union.

The proclamation would allow Trump to create a new tariff program using the International Emergency Economic Powers Act, known as “IEEPA,” which unilaterally authorizes a president to manage imports during a national emergency.

Trump, noted one of the sources in the American network, “loves the law as it gives broad jurisdiction over how tariffs are applied without strict requirements to demonstrate that they are needed for reasons of national security.”

“Nothing is ruled out”, commented a second source familiar with the matter, acknowledging the intense debate over declaring a state of emergency that has already taken place.
The Trump transition team did not respond to a request for comment.

In 2019, Trump used IEEPA to threaten 5% tariffs on all Mexican imports, which would increase to 25%, if Mexico refused to take steps to reduce the number of illegal immigrants crossing the US border.

Not received final decision on whether a state of emergency will be declared, however, sources told CNN. Trump’s team is still exploring other legal avenues to shore up the tariffs that Trump has made a central issue on the campaign trail.

Proponents of the tariffs say they are necessary to boost American manufacturing.

What are the tariffs Trump wants to impose?

Many are hearing and reading about the tariffs that Donald Trump wants to impose on imported products. However, they themselves do not have a clear picture of what it is about. The answers to the following five questions clarify the picture…

What is the tariff?

This is a tax on a product manufactured abroad. The theory is that taxing items when they come into a country makes them more expensive, so people buy cheaper local products instead.

What does Trump propose?

Trump plans 25% tariffs on all goods imported into the US from Mexico and Canada and an additional 10% on existing tariffs on goods from China.

Who…pays?

Tariffs are paid by the domestic company importing the goods, not by the exporting foreign country. But Trump insists the tariffs will hurt other countries, for example they may be forced to lower their prices so their products can remain competitive in the huge US market.

Why is Trump doing this?

Trump says the tariffs will remain in place until Canada and Mexico crack down on drugs and illegal immigrants crossing the border. China’s tariffs will last until it cracks down on fentanyl being smuggled out of the country, he says, but the real reasons are different.

What is a trade war?

A trade war breaks out when countries try to attack each other with taxes and quotas. By making products from other countries more expensive to import, other countries’ economies are hurt, while domestic trade is boosted. We got a first taste of a trade war during Trump’s first term in the White House. China warned today that “no one will win” in another. Trump has a different view…