Trump Considers National Economic Emergency to Impose Tariffs
President-elect Donald Trump is contemplating declaring a national economic emergency to impose broad tariffs, allowing him to bypass traditional justifications for such actions. This potential move comes amid escalating threats to take control of the Panama Canal, acquire Greenland, and push for Canadian statehood.
According to sources familiar with the discussions, this strategy could enable Trump to utilize the International Economic Emergency Powers Act, granting him significant leeway in creating a new tariff program. "Nothing is off the table," one source noted, confirming that robust debates about declaring a national emergency have been ongoing.
During a recent press conference at Mar-a-Lago, Trump asserted that the Panama Canal is "being operated by China" and demanded its return to U.S. control. He characterized the canal as vital for the U.S., stating that it was built for military purposes. Additionally, he threatened Denmark with punitive tariffs concerning Greenland, warning of high tariffs if the country resisted his aspirations. His son, Donald Trump Jr., was seen in Greenland's capital, Nuuk, distributing "Make Greenland Great Again" hats.
International reaction has been swift, with Panama’s President José Raúl Mulino affirming that the canal will remain under Panamanian sovereignty. Danish Prime Minister Mette Frederiksen reiterated that "Greenland is not for sale," stressing the territory's future would be determined by its inhabitants. In response to talks about statehood, Canadian Prime Minister Justin Trudeau stated there is "not a snowball’s chance in hell" that Canada would become part of the United States.
Some advisors have attempted to downplay the rhetoric, portraying it as negotiation tactics rather than concrete policy. However, the response from financial markets has been negative, as investors reacted to the possibility of widespread tariffs under the new administration.
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