Trump may declare a national economic emergency to justify blanket tariffs, CNN reports

The elected president Donald Trump there is considering declaring a state of emergency in the national economy four sources familiar with the matter told CNN.

A declaration of this nature would give Trump the authority to create the tariff program he has made the pinnacle of his White House campaign through the International Economic Emergency Powers Act, according to CNN. The law, also known as IEEPA, allows the president to control imports during times of national crisis.

Stock futures weakened after CNN’s report Wednesday morning, and the U.S. dollar gained in value against most other currencies.

CNN sources noted that a final decision has not yet been made on whether Trump will declare a state of emergency in the country. Trump’s team is also evaluating alternative legal arguments, such as pointing to specific sections of U.S. trade law, according to CNN reports.

Trump’s transition team did not immediately respond to CNBC’s request for comment.

Trump often imposes taxes on imports during the election campaign, a call sometimes for fees of 60% or more on Chinese goods. A few weeks after the Republican victory swore raise tariffs on Chinese imports by 10% and impose tariffs of 25% on products coming from Canada or Mexico.

The Washington Post reported on Monday that Trump will narrow the focus of his tariffs, an approach that appears to be favored by Wall Street. But the president-elect later denied this information.

Read CNN’s full story here.