Trump claims he has right to demand US firms out of China

Trump claims to Order US firms out of China under 1977 Law

The U.S. President, Donald Trump said that he has the authority to order the companies of the United States to end their business with China under a 1977 law. China revealed a recent round of tariffs on Friday that was having a worth of $75 billion U.S. goods. And it gears up the ongoing trade war between the two largest economies of the world, and surely it is damaging the world economy. In the reaction of the Chinese move, Trump tweeted on his official account that he wants to order the firms of the United States to windup their business immediately from China. Furthermore, start searching for an alternate, including bring your companies HOME and start making products in the United States of America.

While leaving the White House for attending the G7 summit in France, Trump expressed that he has the absolute authority to do that; however, they will see how it goes. Later he clarified that he was talking about the 1977 International Emergency Economic Powers Act (IEEPA). Moreover, in his tweet on Friday, he wrote that for all the Fake News Reporters that do not have a piece of evidence as to what the rule allows the President to use the powers. So, one must have a look at the IEEPA 1977.

President Authority under IEEPA

The latest remarks of Donald Trump once again raise the question of how far the authority of President goes under the IEEPA. Formerly in May, Trump threatened Mexico to slap with punitive tariffs if it did not slow the migrants’ passage from Central America to the United States. According to the Congressional Research Service, the IEEPA has never begged to enforce tariffs, and U.S. President finally drew back at the last minute.

Trump claims he has right to demand US firms out of China

According to the CRS analysis, the IEEPA passed in the wake of Vietnam and Watergate that gives Donald Trump extensive authority to legalize range of economic transactions succeeding a national emergency declaration. Those powers of President can used to deal with any extraordinary and strange threat to the national security, economy, or foreign policy of the United States.

The President has to consult with Congress under the IEEPA before authority invoking and announcing a national emergency, have to send a report to tell the reason for the declaration.

Read Also: US will hike tariff on Chinese Imports as a Trade war revenge


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