{"id":306850,"date":"2025-04-15T06:20:31","date_gmt":"2025-04-15T06:20:31","guid":{"rendered":"https:\/\/www.thetruthseeker.co.uk\/?p=306850"},"modified":"2025-04-17T06:51:40","modified_gmt":"2025-04-17T06:51:40","slug":"trump-used-emergency-powers-to-impose-his-tariffs-should-we-be-concerned","status":"publish","type":"post","link":"https:\/\/www.thetruthseeker.co.uk\/?p=306850","title":{"rendered":"Trump Used ‘Emergency Powers’ to Impose His Tariffs. Should We be Concerned?"},"content":{"rendered":"

Mike Whitney \u2013 The Unz Review April 13, 2025<\/strong><\/h1>\n

Trump did not fully usurp dictatorial powers to impose his tariffs\u2026. However, his actions, particularly his use of the International Emergency Economic Powers Act (IEEPA) and other emergency powers, have raised significant concerns among critics, legal scholars, and some members of Congress that he is pushing the boundaries of executive authority <\/strong>in ways that could be seen as authoritarian or dictatorial. Grok<\/p>\n

Meet The New Boss, Same as the Old Boss<\/strong><\/p>\n

We just learned that the world\u2019s most powerful person, Donald Trump, has a boss: the bond market.<\/strong>
\nHe may not have acknowledged this to himself, but the global financial tumult he caused\u2026. has locked him in a fiscal prison. \u2026.He is totally in hock to the goodwill of bonds investors\u2026.<\/strong><\/p>\n

He has also handed a loaded gun to his perceived enemy, China, and his supposed ally Japan<\/strong>\u2026. The loaded guns they have are the\u2026 more than a trillion dollars of US Treasuries and China not much less. If they were to sell those bonds, or even if they chose not to refinance maturing bonds, that could be a disaster for Trum<\/strong>p. Because it could cause another potentially crippling spike in bond yields.<\/p>\n

Here is the measure of Trump\u2019s debacle. He may well have trashed America\u2019s single most important financial competitive advantage, namely that investors have traditionally bought the dollar and US Treasuries at a time of economic and political uncertainty. No more<\/strong> \u2013 because he personally has become the world\u2019s source of economic uncertainty and anxiety. So, as I say he is now in a fiscal prison. And if bond investors, including Japan and China, see him imposing tariffs or cutting taxes in ways they don\u2019t like,\u2026 they have the means and power to stop him. Robert Peston@Peston<\/a><\/p>\n

\n
\"\"<\/a><\/div>\n<\/div>\n

Why have the markets responded so erratically to Trump\u2019s \u201cLiberation Day\u201d announcement?<\/p>\n

Investors don\u2019t like uncertainty. Uncertainty breeds fear, fear breeds panic, and panic breeds crashing markets. Trump\u2019s sudden imposition of sweeping tariffs triggered the fear that fundamental changes in global trade would produce higher inflation, slower growth, disrupted supplylines, and escalating conflict with America\u2019s trading partners. <\/strong>These are the anticipated outcomes that put investors on edge and sent markets plunging.<\/p>\n

Trump has tried to allay investor fears by presenting his tariffs as an essential part of his \u201cAmerica First\u201d policy. He is trying to convince his supporters that these new duties will \u201cliberate\u201d working Americans from what-Trump-calls \u201cunfair trade practices.\u201d (In a speech \u201che compared the tariffs to a declaration of economic independence<\/strong> drawing parallels to other historic US milestones.\u201d)<\/p>\n

What can we extrapolate from this?<\/p>\n

First of all, that (in Trump\u2019s mind) the United States has been the victim of abusive treatment by allies and rivals alike. As Trump put it: \u201cThey are ripping us off\u201d. This is the basic mindset that energizes Trump\u2019s \u201cLiberation Day\u201d philosophy, a philosophy that the rest of the world should be punished for America\u2019s deficit-generating over-consumption<\/strong> and its $36 trillion ocean of red ink. That is everyone else\u2019s fault, not ours. And mainly it is China\u2019s fault because China opened its country to the voracious American corporations who moved their industries to take advantage of China\u2019s cheap labor. According to Trump, China should be blamed for that as well.<\/p>\n

The problem with \u201cAmerica First\u201d economic policy, is that other countries are going to defend their own economic interests, too. So, if someone like Trump tries to arbitrarily scrap the current system of international trade and impose his own version, he\u2019s going to encounter stiff opposition. (which he has.)<\/p>\n

Even so, Trump\u2019s announcement has had a calamitous effect on the global financial system triggering a convulsive flight from US Treasuries. This, in turn, has prompted many analysts to speculate that Trump\u2019s trade war will fundamentally change the manner in which international trade is conducted. That, of course, has set off more alarms while ratchetting up investor anxiety to new highs. Singapore Foreign Minister Vivian Balakrishhnan summed it up like this:<\/p>\n

This is the end of an era\u2026 The architect, the master planner, the developer of the rules-based system of economic integration has decided that it now needs to engage in a full-scale demolition of the same system that it created.<\/strong><\/p>\n

He\u2019s right, isn\u2019t he? The era of integrated markets in a globalized system is over.<\/strong> The world is being redivided into warring blocs by an administration that believes that the country that borrows and consumes more than any other country in the history of mankind is being unfairly exploited by low paid workers around the planet. <\/strong>The idea is laughable.<\/p>\n

\"\"<\/a><\/div>\n

To fully grasp the extent to which Trump\u2019s underlying theory depends on the belief that \u201cThey are ripping us off\u201d, we\u2019ve excerpted this short clip from a post by Arnaud Bertrand commenting on a speech by Trump\u2019s Chair of the Council of Economic Advisers, Steve Miran:<\/p>\n

The gist of Miran\u2019s argument is to reposition the global reserve currency status of the dollar not as an exorbitant privilege\u2026 but as somehow a \u201cburden\u201d that the rest of the world needs to compensate the US for bearing<\/strong>. As Miran explains it, having the dollar as a reserve currency \u201chas caused persistent currency distortions and contributed, along with other countries\u2019 unfair barriers to trade, to unsustainable trade deficits\u201d which \u201chave decimated our manufacturing sector.\u201d<\/strong><\/p>\n

So, he wants to give up the reserve currency status of the dollar, right? Wrong. He wants to have it both ways. He says that America\u2019s \u201cfinancial dominance cannot be taken for granted; and the Trump Administration is determined to preserve [it]\u201d but this same financial dominance \u201ccomes at a cost\u201d and \u201cother nations\u201d need to pay for it\u2026.<\/strong><\/p>\n

Let\u2019s pause a moment here to contemplate the sheer insanity of this: the U.S. is literally suggesting that countries should mail checks to the US Treasury as tribute for the \u2018privilege\u2019 of maintaining the dollar as a global reserve currency, when it is this very reserve status of the dollar that is the cornerstone of US power.<\/strong> Arnaud Bertrand<\/a><\/p>\n

WTF? So, Miran thinks that overconsumption and deficit-spending is so indispensable to the global economic system, that other countries should pay the US to continue its shameless freeloading?<\/p>\n

Indeed, that is his position. And the belief is not limited to Miran either. In fact, this is the ideological cornerstone upon which Trump\u2019s trade philosophy rests. \u2018We will spend; you will pay. We will take; you will give. We will rule, you will follow.\u201d Get the picture?<\/p>\n

Oh\u2014and just to add insult to injury\u2014we also regard ourselves as the \u2018victim\u2019 in this relationship. (\u201cThey\u2019re ripping us off.\u201d) It boggles the mind.<\/p>\n

\n
\"\"<\/a><\/div>\n<\/div>\n

Trump\u2019s whole scattershot approach to international trade speaks to this unbounded arrogance. And that appears to be the driving force behind \u201cLiberation Day\u201d, the immutable belief that the rest of the world exists only to serve US interests. Am I wrong?<\/p>\n

I am not wrong. Just look at the markets. Investors are voting with their feet. They\u2019re headed for the exits. Their panic is a referendum on Trump\u2019s trade policies<\/strong>. This is not a \u201cfinancial crisis\u201d. This is a \u201ctariff-induced run on US risk assets\u201d that is attributable to one man alone: Donald Trump. No one else caused this.<\/p>\n

Trump\u2019s signature economic program (reciprocal tariffs) is based on the wrongheaded view that the rest of the world is supposed to function as America\u2019s personal ATM. But investors don\u2019t ascribe to this belief; they think the tariffs are going to trigger a firesale of US financial assets and crash the market. And that\u2019s what the plummeting Treasuries market is telling us, too. This is from an article at Politico<\/em>:<\/p>\n

The sharp sell-off in government debt securities that underpin the global financial system pushed President Donald Trump to pause for 90 days his plans to slap punishing tariffs on dozens of trading partners\u2026.<\/p>\n

Investors often treat government bonds as a haven during times of market stress. Now, the opposite has occurred. Hedge funds and other investors have dumped Treasury securities even as stocks plunged, pushing up yields that are used to benchmark everything from mortgage rates to corporate loans.<\/p>\n

The 90-day pause has done little to quell the market\u2019s fears. \u2026. If trade policy uncertainty continues to rattle bond investors and drives up borrowing costs, it would saddle Trump with a lethal mix of high interest rates, elevated inflation and slow or even negative economic growth\u2026.<\/p>\n

There\u2019s little clarity right now on the extent to which bond market jitters are driven by general market turmoil \u2014 some investors are selling Treasuries because they need cash \u2014 or whether it might signal something more ominous, such as less confidence in U.S. assets as Trump upends the global economic order\u2026. The fact that the dollar and Treasury bonds are sinking even as stocks crater reflects broader questions about \u201cwho is going to finance continuous deficits. Where is the capital going to come from to support U.S. assets in general?\u201d Bond market motion sickness in Trump\u2019s economy,<\/a> Politico<\/em><\/p>\n

The situation is dire which is why Trump threw in the towel and lifted the tariffs on 90 countries excluding China. His plan to use tariffs as a means of inflicting pain on trading partners was derailed by an unexpected flight from US debt that he never saw that coming.<\/p>\n

The incident speaks to the supreme importance of US Treasuries in the global system.<\/strong> The $28 trillion Treasuries market\u2014which is the most liquid and well-capitalized market in the world\u2014plays a special role in the global economy. The yields on the 10-year and 2-year notes, serve as a benchmark for pricing other financial instruments worldwide, including corporate bonds, mortgages, and loans. When Treasury yields rise or fall, they influence borrowing costs globally. <\/strong>In other words, U.S. Treasury yields \u201cset the tone for global monetary conditions\u201d, and when the market becomes volatile\u2014as it has following Trump\u2019s tariffs fiasco\u2014everything goes haywire.<\/p>\n

It\u2019s no overstatement to say the US Treasuries market is the cornerstone upon which western-style Capitalism rests and any cracks that appear in that foundation are likely to have catastrophic impact on the world economy. That is why Trump gave-way quickly and eased the policy on everyone but China.<\/p>\n

\"\"<\/a><\/div>\n

As for China, the country is now effectively under a US embargo<\/strong> that has been imposed willy-nilly without congressional approval and in clear violation of WTO rules<\/strong>. Here\u2019s a short blurb from Grok:<\/p>\n

The WTO sets out a framework for international trade (which includes) the prohibition of arbitrary or unjustifiable trade barriers\u2026 (tariffs) cannot be used to discriminate unfairly between trading partners. Trump\u2019s tariffs violate WTO rules\u2026 as they appear to breach MFN, non-discrimination, and tariff-binding commitments without clear justification under WTO exceptions. <\/strong>(The Tariffs also) lack sufficient justification under national security exceptions and are seen as discriminatory and protectionist. (Grok)<\/p>\n

It\u2019s also worth noting that the countries that Trump has imposed tariffs on are being asked to align with U.S. national security goals<\/strong>. This is an issue that the media has failed to cover in any detail, but the implication is that the administration is using economic coercion to enlist an anti-China coalition that will join the United States in its efforts to sanction, isolate and encircle the PRC. <\/strong><\/p>\n

Also, \u201cTrump has invoked the International Emergency Economic Powers Act (IEEPA) to justify his tariffs, including those announced as part of his \u201cLiberation Day\u201d policy and earlier actions. According to Grok:<\/p>\n

A White House fact sheet from April 2, 2025, states that Trump declared a national emergency <\/strong>due to \u201cforeign trade and economic practices\u201d creating a threat to U.S. national and economic security, and it mentions using the IEEPA to impose \u201cresponsive tariffs\u201d<\/strong> to address this emergency\u2026.<\/p>\n

The IEEPA, enacted in 1977, allows the president to declare a national emergency in response to an \u201cunusual and extraordinary threat\u201d to national security, foreign policy, or the economy that originates outside the U.S. Once declared, the president can block transactions, regulate imports\/exports, and take other economic measures\u2026.<\/p>\n

\u2026.Conclusion<\/p>\n

Yes, Trump has invoked the IEEPA to justify his tariffs, including those from the Liberation Day announcement on April 2, 2025, and earlier actions in February 2025. He declared national emergencies under the IEEPA to impose both the baseline 10% tariff on all imports and the higher reciprocal tariffs, framing trade deficits and related issues as threats to U.S. economic and national security.<\/strong> (Grok)<\/p>\n

Question\u2014Has Trump used the International Emergency Economic Powers Act (IEEPA) to avoid getting congressional approval for his trade policy?<\/p>\n

Yes, Trump has used the International Emergency Economic Powers Act (IEEPA) to avoid the need for congressional approval for his tariffs<\/strong>, including the Liberation Day tariffs and earlier 2025 actions. By declaring national emergencies related to trade deficits, drug trafficking, and migration, he claims unilateral authority under IEEPA to impose tariffs without legislative consent, exploiting the law\u2019s broad emergency powers<\/p>\n

Question\u2014Does Congress have the legal authority to oversee the imposition of tariffs?<\/p>\n

Yes, Congress has the legal right to oversee the imposition of tariffs under the Constitution and federal law<\/strong> (Article I, Section 8), as it holds the ultimate authority to regulate foreign commerce and impose duties. However, Trump\u2019s use of IEEPA to declare national emergencies allows him to bypass this oversight temporarily, relying on broad executive powers that don\u2019t require congressional approval.<\/p>\n

Last question for Grok: What do we call a political leader who usurps Congress\u2019s legitimate constitutional authority and accrues all state power to himself?<\/p>\n

A political leader who usurps Congress\u2019s legitimate constitutional authority and accrues all state power to himself is most commonly called an autocrat, dictator, or tyrant<\/strong> in extreme cases\u2026. For Trump specifically, the labels depend on perspective: critics see his IEEPA use as authoritarian, while supporters see it as bold leadership.<\/strong><\/p>\n

I blame Congress as much as Trump but\u2014however you look at it\u2014we\u2019re in uncharted waters.<\/p>\n

\"\"<\/a><\/div>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A political leader who usurps Congress\u2019s legitimate constitutional authority and accrues all state power to himself is usually called a dictator, or tyrant<\/p>\n","protected":false},"author":121,"featured_media":306352,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[61,41],"tags":[],"class_list":["post-306850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-Commentary","category-Inside_the_White_House_and_Washingtons_Beltway"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/306850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=306850"}],"version-history":[{"count":5,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/306850\/revisions"}],"predecessor-version":[{"id":306863,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/306850\/revisions\/306863"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/media\/306352"}],"wp:attachment":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=306850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=306850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=306850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}