TLDR
- Trump reportedly complimented Biden’s economic policies in private despite public criticism
- Trump is considering declaring a national economic emergency for new tariff programs
- The International Economic Emergency Powers Act (IEEPA) could be used to implement broad tariffs
- Trump previously used IEEPA to threaten Mexico with tariffs in 2019
- The plan would affect both allies and adversaries in global trade
Former President Donald Trump is exploring the possibility of declaring a national economic emergency to implement a broad tariff program, according to multiple sources familiar with the discussions. This development comes as Trump has offered contrasting public and private assessments of the current economic situation.
In a 55-minute interview with USA TODAY, President Biden revealed that Trump had privately expressed approval of certain economic policies implemented during the Biden administration.
“He was very complimentary about some of the economic things I had done,” Biden stated, adding that Trump acknowledged he was “leaving with a good record.”
This private acknowledgment stands in stark contrast to Trump’s public statements, where he has characterized the country’s economic state as a “disaster” and a “total mess.”
The proposed emergency declaration would utilize the International Economic Emergency Powers Act (IEEPA), which grants presidents broad authority to manage imports during declared national emergencies. Four sources familiar with the matter confirmed these discussions to CNN.
IEEPA provides presidents with extensive jurisdiction over tariff implementation without requiring strict proof of national security necessity. This flexibility appears to be a key factor in Trump’s consideration of the act.
The potential tariff program would affect both allied and adversary nations, representing a comprehensive approach to reshaping global trade relationships. Sources indicate that all options remain under consideration, with one insider stating, “Nothing is off the table.”
This wouldn’t be Trump’s first use of IEEPA for trade purposes. In 2019, he employed the act to threaten Mexico with escalating tariffs, starting at 5% and potentially rising to 25%, unless Mexico took steps to reduce undocumented immigration across the U.S. border.
The 2019 situation was resolved through diplomatic channels after Mexican officials traveled to Washington for negotiations, resulting in an agreement that prevented the tariffs from being implemented.
The current discussions reflect a broader strategy to reset global trade dynamics, should Trump return to office. The proposed emergency powers would provide legal justification for implementing universal tariffs without the typical requirements for proving national security concerns.
The Trump transition team has not responded to requests for comment about these plans, leaving many details of the potential program unclear.
Economic experts note that such broad tariff implementation would represent a major shift in U.S. trade policy, affecting import costs across multiple sectors and international relationships.
The timing of these discussions coincides with ongoing debates about the state of the American economy. While Trump publicly criticizes current economic conditions, his private remarks to Biden suggest a more nuanced view of recent economic performance.
The contrast between Trump’s public statements and private assessments adds complexity to understanding his true evaluation of current economic policies and their effects.
The potential use of emergency powers for tariff implementation would build upon Trump’s previous trade policies, which included targeted tariffs on specific countries and products during his first term.
Sources indicate that detailed planning for the potential emergency declaration and tariff program is currently underway, though specific rates and affected products have not been finalized.
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