Trump is considering declaring a national emergency in order to implement a new tariff plan.

According to four sources familiar with the matter, U.S. President-elect Donald Trump is considering declaring a national economic emergency to reset global trade balance during his second term in office, providing a legal basis for imposing widespread tariffs on allies and adversaries. The core of this plan involves utilizing the International Emergency Economic Powers Act (IEEPA) to develop a new tariff plan, granting the president unilateral control over imports during a national emergency. Trump favors this approach because the IEEPA gives him broad authority to impose tariffs without strict proof that they are necessary for national security reasons. While no final decision has been made, the Trump team is actively exploring this and other legal avenues to advance its tariff policy. One insider revealed that discussions about declaring a national emergency were indeed intense, while the Trump transition team declined to comment on the matter. "The president has broad authority to impose tariffs, with multiple legal bases supporting his actions," said Kelly Ann Shaw, a former deputy assistant to Trump for international economic affairs and trade attorney. "The International Emergency Economic Powers Act (IEEPA) is a clear example of this." Looking back at history, Trump threatened in 2019 to impose a 5% tariff on Mexican imports using the IEEPA, to pressure Mexico to take action to reduce the number of undocumented immigrants; if Mexico refused to act, the tariff would increase to 25%. While these tariffs were ultimately not implemented, Trump's declaration of a national emergency concerning the southern border three months ago has sparked legal challenges from business groups. The Trump team is also evaluating the possibility of using Section 338 and Section 301 of the U.S. Trade Act. Section 338 allows the president to impose additional tariffs on countries perceived as discriminating against U.S. trade, authorizing the president to impose new tariffs on certain product categories from specific countries as direct retaliatory measures, although this practice has not been practically applied in recent years. Section 301, on the other hand, was the basis for Trump's initial tariffs on China. The Biden administration has maintained these tariffs, providing a basis for the new president to adjust tariffs as he sees fit. However, implementing tariffs under these regulations requires a government investigation, and affected companies typically engage in long-term lobbying efforts to avoid the tariffs. If Trump chooses to declare a national economic emergency, and if this status were to take effect quickly, it is currently unclear what evidence he would cite to support this decision. During a press conference on Tuesday, Trump acknowledged the strong foundation of the U.S. economy and criticized inflation. However, he also stated, "Over the next four years, the U.S. economy will soar like a rocket, it is actually already on that trajectory." He also mentioned that the latest polls show public support for the economy is on the rise. Meanwhile, supporters of tariffs argue that these measures are crucial for promoting American manufacturing and are a key component of achieving economic and national security goals. "The Trump team understands deeply that rebuilding industrial capacity is essential for economic and national security, benefiting communities and American workers," said Nick Ikoveliya, Senior Vice President of Prosper America Alliance. "To achieve these goals, we need to implement strong pro-American trade policies, including tariffs." Overall, Trump is considering implementing his tariff policy by declaring a national economic emergency to reset global trade balance. Despite facing legal challenges and procedural complexities, the Trump team remains actively exploring various legal avenues to achieve its goals.