Amid a declared national economic emergency, former President donald Trump holds the authority to implement a new tariff programme. This power is derived from the International Economic Emergency Powers Act (IEEPA), a law that grants the president unilateral control over import regulations during times of national crisis. Under the IEEPA, Trump can impose tariffs without the need to present detailed evidence of a specific threat to national security. This streamlined process enables swift economic measures to be enacted.
A Law with Far-Reaching Implications
Table of Contents
Kenneth Manusama, a legal expert specializing in U.S.policy,notes,”It is a fairly common law that is also regularly applied. The economic situation does not necessarily have anything to do with it. The law offers the chance to take economic measures, regardless of the exact threat.” While the IEEPA provides important flexibility, it does come with a critical requirement: the president must periodically update Congress on the situation and justify the continued use of the law.
A Precedent Set with Mexico
This isn’t the first instance of Trump utilizing the IEEPA. In 2019, he threatened to impose a 5 percent tariff on all mexican imports, with plans to increase it to 25 percent if Mexico failed to curb illegal immigration into the United States.The threat of economic sanctions brought both nations to the negotiating table, and the tariffs were ultimately never enforced. This example underscores how the IEEPA can serve as a diplomatic tool, even when the measures are not fully implemented.
For more insights and updates on economic policies and global developments, consider subscribing to our newsletter. Stay informed with daily news and expert analysis delivered straight to your inbox. Stay sharp, stay ahead.
What Subscription Plans Does Netflix Offer?
Netflix is a leading streaming service that offers a vast library of movies and TV shows accessible on multiple devices. Whether you’re using a smart TV,gaming console,PC,Mac,mobile device,or tablet,Netflix ensures seamless streaming. To get started, visit the Netflix login page at https://www.netflix.com/mx/login and sign in with your account credentials. If you don’t have an account yet, you can sign up directly on the website.Netflix provides a range of subscription plans tailored to different needs, allowing you to stream content in high definition or even 4K, depending on your chosen plan. Enjoy your favourite shows and movies anytime, anywhere!
given the potential impact on trade relations, how might tariffs imposed under the IEEPA affect specific industries in the United States?
Interview with kenneth Manusama: Legal Expert on U.S. Policy adn the Implications of the IEEPA
By Archys, Archyde News Editor
In light of the recent declaration of a national economic emergency and the potential implementation of a new tariff program by former President Donald Trump under the International economic Emergency Powers Act (IEEPA), we sat down with Kenneth Manusama, a renowned legal expert specializing in U.S. policy,to discuss the implications of this law and its potential impact on the economy,trade relations,and national security.
Archyde: Thank you for joining us, Mr. Manusama. Let’s start with the basics.Can you explain what the IEEPA is and how it grants the president such broad authority over tariffs?
Kenneth Manusama: Absolutely.The International Economic Emergency Powers Act, or IEEPA, is a federal law enacted in 1977. it grants the president meaningful authority to regulate international economic transactions during times of declared national emergencies. This includes the ability to impose tariffs,block assets,or restrict trade without needing congressional approval. The law was designed to provide the executive branch with the tools to respond swiftly to crises, particularly those involving national security or economic threats.
Archyde: How does this differ from the usual process of imposing tariffs?
Kenneth Manusama: Typically, tariffs are imposed after a thorough inquiry and review process, often involving agencies like the U.S. International Trade Commission (USITC) or the Department of Commerce. Under Section 232 of the Trade Expansion Act, such as, tariffs can be imposed on national security grounds, but even then, there’s a requirement to present evidence and justify the action. The IEEPA bypasses much of this bureaucracy. Once a national emergency is declared, the president can act unilaterally, with minimal oversight or need for detailed justification.
Archyde: Given the current economic emergency, what are the potential risks and benefits of using the IEEPA to impose tariffs?
Kenneth Manusama: The primary benefit is speed. In a crisis, the ability to act quickly can be crucial to stabilizing the economy or addressing a perceived threat. However, the risks are significant. Unilateral action can lead to trade wars, as we’ve seen in the past. It can also create uncertainty for businesses and trading partners, which can have long-term economic consequences.Additionally,the lack of oversight raises concerns about accountability and the potential for misuse of power.
Archyde: Critics argue that this law gives the president too much power. Do you think the IEEPA needs reform?
Kenneth manusama: That’s a valid concern. While the IEEPA was designed for emergencies, its broad language and lack of checks and balances make it ripe for potential abuse. Some legal scholars and policymakers have called for reforms, such as requiring congressional approval for certain actions or setting clearer limits on the president’s authority. However, any changes would need to strike a balance between maintaining the flexibility to respond to crises and ensuring accountability.
Archyde: How might other countries respond to tariffs imposed under the IEEPA?
Kenneth Manusama: Historically, unilateral tariffs have often led to retaliatory measures. Such as, when the U.S. imposed tariffs on steel and aluminum under Section 232, several trading partners responded with their own tariffs on U.S. goods. This tit-for-tat escalation can harm global trade and economic growth. In the current context, if tariffs are imposed under the IEEPA, we could see similar reactions, particularly from major trading partners like China, the European Union, or Canada.
Archyde: what advice would you give to businesses and policymakers navigating this uncertain landscape?
kenneth Manusama: For businesses, it’s crucial to stay informed and be prepared for potential disruptions. Diversifying supply chains and exploring new markets can help mitigate risks. For policymakers, I would urge caution and a focus on long-term stability. While the IEEPA provides powerful tools, they should be used judiciously and with a clear understanding of the potential consequences. Collaboration with international partners and a commitment to multilateral solutions are also key to avoiding unneeded conflict.
Archyde: Thank you, Mr. Manusama, for your insights. This is a complex issue, and your expertise has been invaluable in helping our readers understand the implications of the IEEPA and its potential impact on the economy and trade relations.
Kenneth Manusama: thank you for having me. It’s an vital conversation, and I hope it encourages further dialog about how we can balance emergency powers with accountability and long-term economic stability.
Kenneth Manusama is a legal scholar and policy expert with over two decades of experience in U.S. trade law and international relations. His work focuses on the intersection of law, economics, and national security.
