Saturday, August 24, 2019

Trump Signals He May Use Draconian 'Emergency Economic Powers Act of 1977' in Trade War Against China

In a tweet early on Friday, President Trump said that "Our great American companies are hereby ordered to immediately start looking for an alternative to China..."

Many questioned the ability of the President to issue such an order but just before midnight on Friday, Trump appeared to tweet how he has the power to issue such an order.

It is not completely clear by this tweet whether Trump plans to use the Emergency Economic Powers Act of 1977 with regard to business with China or whether he is simply indicating he has the ability to do so.

Reuters notes:
Trump could treat China more like Iran and order sanctions, which would involve declaring a national emergency under a 1977 law called the International Emergency Economic Powers Act, or IEEPA.
Once an emergency is declared, the law gives Trump broad authority to block the activities of individual companies or even entire economic sectors, former federal officials and legal experts said.
If nothing else we see the taunting, bully Trump in action once again which makes it difficult for global firms to make long-term plans because they don't know what may or may not be legal in the near future. Trump is the economic instability man.



  1. The Destroyer-in-Chief is at it again...

  2. What exacly consitutes an emerency? I mean how is it defined? What is to stop the president from saying anything is an emergency? Does he just declare it (I declare we are in an emergency) and then get to do anything he wants?

    1. 1 - I doubt anyone knows.

      2 - See #1

      3- Nothing. Presidents have been "declaring emergencies" for decades.

      4- Yes, and sort-of. It depends on what the law under which he is proclaiming the emergency allows him to do. Of course, Congress had to grant that authority, so they are the real culprits to blame.

      I would also add that Congress has never taken seriously their role to keep the executive branch in check. Instead, they have repeatedly delegated their powers to the executive branch, leaving them few places to turn to exercise any control, outside of impeachment, which they are loathe to do.

      With a clown like Trump in charge, who knows what he would attempt to do.