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Trump mulls imposing national economic emergency on US to push his tariff plans
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  • Trump mulls imposing national economic emergency on US to push his tariff plans

Trump mulls imposing national economic emergency on US to push his tariff plans

FP Staff • January 9, 2025, 12:08:45 IST
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The emergency powers would grant Trump the ability to construct a new tariff programme without having to demonstrate traditional national security justifications

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Trump mulls imposing national economic emergency on US to push his tariff plans
President-elect Donald Trump. File image/ AP

Days before he assumes the Oval Office, reports are emerging that US President-elect Donald Trump is planning to declare a national emergency to impose his tariff ambitions. The emergency powers would allow the American Commander-in-Chief to implement broad measures against both allies and adversaries of the United States.

The reports first broke on CNN, as Trump continued to escalate threats to seize the Panama Canal, acquire Greenland and force Canada into becoming a US state. Four sources familiar with the matter told the American news outlet that Trump could impose these measures through the International Economic Emergency Powers Act.

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The emergency powers would grant Trump the ability to construct a new tariff programme without having to demonstrate traditional national security justifications. “Nothing is off the table,” one source familiar with the matter told CNN. The insider confirmed that discussions about declaring a national emergency have already taken place.

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Trump refuses to budge amid global condemnation

The consideration of imposing a national emergency is coming at a time amid a mounting international backlash against Trump. The US president-elect stirred more headlines after he refused to rule out using military or economic coercion regarding Panama and Greenland during a rambling press conference at Mar-a-Lago on Tuesday.

Trump has claimed that the Panama Canal was “being operated by China” and demanded its return to US control. “The Panama Canal was built for our military,” Trump said. “Look, the Panama Canal is vital to our country.” He also warned Denmark that he would impose punitive tariffs on Greenland.

He warned that he “would tariff Denmark at a very high level” if the country resisted his territorial ambitions. His remarks coincided with that of his son Donald Trump Jr in Nuuk, Greenland’s capital, where he reportedly distributed “Make Greenland Great Again” hats while claiming to be visiting as a tourist.

Several US allies swiftly rejected Trump’s stance over the matter. Panama’s president, José Raúl Mulino, insisted that “every square metre” of the canal would remain under Panamanian sovereignty. Meanwhile, the Danish prime minister, Mette Frederiksen, reiterated that “Greenland is not for sale”, emphasising the territory’s future would be decided by its people.

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With inputs from agencies.

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