Trump’s Long-Term Trade War Emergency
- Recent stock market volatility is attributed to the unpredictable customs policies of the U.S.
- trade policies can cause businesses to delay decisions, leading to a restraint on investments and new ventures.This volatility stems from the President's use of executive emergency powers.
- These powers originate from the Trading with the Enemy Act of 1917.More recently, the national Emergency Act (NEA) and the International Emergency Economic Powers Act (IEEPA), enacted in...
U.S. Customs Policy and Presidential Emergency Powers
Table of Contents
- U.S. Customs Policy and Presidential Emergency Powers
- U.S. Customs Policy and Presidential Emergency Powers: A Q&A
- What Presidential Powers Affect U.S. Customs and Trade?
- What is the international Emergency Economic Powers Act (IEEPA)?
- How Are Emergency Powers Used to Impose Tariffs?
- What are the Concerns with the Use of Presidential Emergency Powers?
- What is the Role of Congress in Overseeing Presidential Emergency Powers?
- How Do Presidential Powers impact Businesses and the Stock Market?
- How can Presidential emergency powers be limited?
Recent stock market volatility is attributed to the unpredictable customs policies of the U.S. President, particularly concerning trade with Canada, Mexico, and China.
The uncertainty surrounding U.S. trade policies can cause businesses to delay decisions, leading to a restraint on investments and new ventures.This volatility stems from the President’s use of executive emergency powers.
Law from 1917
These powers originate from the Trading with the Enemy Act
of 1917.More recently, the national Emergency Act (NEA) and the International Emergency Economic Powers Act (IEEPA), enacted in the 1970s, grant the President significant authority to take action regarding economic relations with foreign countries if a national emergency is declared.
While these powers might be acceptable if limited to genuine emergencies requiring immediate action, the definition of an emergency
has expanded, and congressional oversight remains limited. As of February 2025, 48 national emergencies were in effect under IEEPA, many of wich were largely unknown and would not have catastrophic consequences if standard legislative procedures were followed.
Three recent emergency declarations—one concerning the southern border with Mexico, another the northern border with Canada, and a third related to Chinese companies in synthetic opioid supply chains—underscore the executive powers used to impose tariffs on these countries.
Apart from emergency powers, Congress has granted the President extensive authority for international economic measures, including imposing tariffs. Section 301 of the 1974 Commercial Act allows tariffs on unfair trade practices, while Section 232 of the Trade Expansion Act of 1962 permits tariffs on imports deemed a threat to national security. Anti-dumping and countervailing duties also serve as tools against unfair trade practices.
However, these alternative powers require investigations, documentation, and public statements from affected U.S. companies. The lack of procedural safeguards when using emergency powers makes them attractive for arbitrary executive action.
The issue of emergency powers extends beyond tariffs. The IEEPA’s scope is vast. In his first term, one president attempted to use these powers to construct a border wall and ban a social media platform.
Previous presidents have used emergency powers to impose economic sanctions against other countries and authorize executive agencies to impose sanctions and confiscate property.While most sanctions target foreigners, U.S. citizens can also face penalties under IEEPA for violating sanctions or contravening national security priorities declared in a state of emergency.
The tip of the Iceberg
The extent of executive powers available to the president under a state of emergency may be underestimated.
Since taking office, one president declared several emergencies affecting various aspects of American life, including a national energy emergency
and a national emergency concerning transnational gangs. As with tariffs, the President possesses other non-emergency powers to address these issues, but none are as thorough as those available during an emergency declaration.
Upon signing the energy emergency declaration, one president stated that it means that you can do everything that is necessary to get out of this problem
—a broad indication of perceived authority.
Congress Remains Passive
Despite concerns about executive powers, Congress has not substantially restricted the president’s emergency powers.
Original legislation from the 1970s allowed Congress to remove a presidential emergency with a simple majority. However, a 1983 Supreme Court decision requires a two-thirds majority in both chambers to override a presidential veto.
New legislation is needed to restrict these powers, but progress has been limited. Congress has generally hesitated to reclaim powers delegated to the president.
The extensive use of IEEPA emergency powers for sanctions has raised concerns that restricting presidential powers coudl disrupt the U.S.’s complex sanctions regime.
Recently, bipartisan reform efforts have emerged. Measures like the Article One Act
propose that a presidential national emergency expire within 30 days unless expressly approved by a majority of Congress.
However, such measures have faced obstacles. While some members of Congress have attempted to revive these efforts, their success remains uncertain.
Given the enthusiasm for using emergency powers, achieving bipartisan consensus may be challenging. However, this enthusiasm should motivate Congress to limit presidential overreach.
U.S. Customs Policy and Presidential Emergency Powers: A Q&A
Introduction
Recent volatility in the stock market has been linked to unpredictable customs policies of the U.S. President.This article delves into the President’s use of executive emergency powers in shaping these policies, focusing on their impact on trade with countries like Canada, Mexico, and China.
What Presidential Powers Affect U.S. Customs and Trade?
The U.S. President wields meaningful authority over international economic measures, including the power to impose tariffs. This authority stems from several sources:
Emergency Powers: The Trading with the Enemy Act of 1917, the National Emergency Act (NEA), and the International Emergency Economic Powers act (IEEPA) are powerful instruments. The IEEPA, in particular, allows the president to take action regarding economic relations with foreign countries when a national emergency is declared. As of February 2025, 48 national emergencies were in effect under IEEPA.
Non-Emergency powers:
Section 301 of the 1974 Commercial Act: Allows tariffs on unfair trade practices.
Section 232 of the Trade Expansion Act of 1962: Permits tariffs on imports deemed a threat to national security.
Anti-dumping and Countervailing Duties: Tools to address unfair trade practices.
What is the international Emergency Economic Powers Act (IEEPA)?
The International Emergency Economic Powers Act (IEEPA) is a key tool for the President, granting broad authority to manage economic relations during a declared national emergency. This includes the power to:
Impose sanctions.
Confiscate property.
Regulate or prohibit transactions.
The IEEPA’s scope extends beyond tariffs. Previous uses of this act include attempts to construct a border wall.
How Are Emergency Powers Used to Impose Tariffs?
Emergency declarations can be used to justify tariffs, as seen in recent declarations related to:
The southern border with Mexico.
The northern border with Canada.
Chinese companies in synthetic opioid supply chains.
The use of emergency powers allows for swift action, bypassing the need for investigations, documentation, public statements from affected U.S. companies, and congressional oversight making them attractive for quick executive action.
What are the Concerns with the Use of Presidential Emergency Powers?
The expansion of what constitutes a national “emergency” and the limited congressional oversight raise concerns. The lack of procedural safeguards increases the potential for arbitrary executive action.
Here are some of the key concerns:
Broad definition of ”Emergency”: The definition of what constitutes a national emergency has broadened over time.
Limited Congressional Oversight: Congress has limited power to oversee or restrict the President’s use of these powers.
Bypassing Checks and Balances: The use of emergency powers allows the President to bypass standard legislative procedures.
What is the Role of Congress in Overseeing Presidential Emergency Powers?
Congress’s role in overseeing presidential emergency powers is limited, as they are authorized to declare national emergencies.
Original Legislation (1970s): Allowed Congress to remove a presidential emergency with a simple majority.
Supreme Court Decision (1983): Requires a two-thirds majority in both chambers of Congress to override a presidential veto.
Current Challenges: Congress has generally hesitated to reclaim powers delegated to the president.
Reform Efforts: Some bipartisan efforts have emerged, such as the “Article One Act” which proposes that national emergencies expire within 30 days unless approved by Congress.However, these efforts have faced obstacles.
How Do Presidential Powers impact Businesses and the Stock Market?
The uncertainty surrounding U.S. trade policies can restrain investment and new ventures. The use of executive emergency powers often leads to delayed business decisions, contributing to stock market volatility.
How can Presidential emergency powers be limited?
Multiple avenues for change have been proposed:
Legislative Action : Introducing measures to ensure that Congress has more control over emergency declarations i.e. requiring approval.
Reduce the number of issued states of emergency: Reduce the number of emergency powers declarations or to limit their duration.
Summary of Key Powers
| Power Type | Source | Action | Congressional Oversight |
| :————————— | :——————————————— | :————————————————————————————————— | :——————— |
| Emergency Powers | Trading with the Enemy Act, NEA, IEEPA | Tariffs, sanctions, property confiscation, regulate economic relations during national emergencies | Limited |
| Non-Emergency Powers (Tariffs) | Section 301 of the 1974 Commercial Act, section 232 of the Trade Expansion Act of 1962, Anti-dumping and Countervailing Duties | Tariffs on unfair trade practices, threats to national security, unfair trade practices | More extensive |