With the trade war with China beginning to threaten the booming economy, President Donald Trump is considering drastic measures against China.
In an answer to the $75 billion worth of goods China now wants to hit with tariffs, President Trump is considering declaring a national emergency so he can invoke the International Emergency Economic Powers Act (IEEPA) of 1977 and order U.S. companies to evacuate from China.
Stop Doing Business with China
After China announced its new tariffs, Trump “ordered” U.S. companies to stop conducting business both in and with China.
He further suggested companies operating in China bring their businesses back into America.
The media, of course, ridiculed Trump over this declaration, but it ended up being the media that walked away with egg on its face.
As it turns out, President Trump is well within his rights to do this, IF he declares a national emergency.
IEEPA of 1977
The IEEPA has been used before. Jimmy Carter was the first president to invoke the Act in 1979 and it is currently in place with regard to 29 different matters.
If the law is invoked, it would make it virtually impossible for any U.S. company to operate in China. Furthermore, those companies would be blocked from bidding on any government contracts.
In essence, it would cripple China, forcing them to come to the table to end this trade war.
For liberals thinking they could possibly hold this up in court, experts say there are no legal barriers for Trump to overcome.
The White House has backed off its request of U.S. companies cutting all ties with China, but the threat of using the IEEPA still looms very large.
It should further be noted that this is not something out of the ordinary, as the media will no doubt portray it. As mentioned above, the IEEPA is still in effect in 29 different cases, and U.S. presidents have used it 50 times since its enactment.