In a dramatic escalation of trade tensions, U.S. President Donald Trump has imposed an across-the-board 10% tariff on goods from China, threatened, implemented and since paused a 25% tariff on imports from Canada and Mexico and vowed similar measures against the European Union.
His stated objective is to secure deals to halt the flow of drugs and unauthorized immigration into the United States, suggesting that tariffs will now be an instrument of border security. But trade barriers on this scale could destabilize global markets, drive up prices for American consumers and potentially drag the U.S. — and the world — into recession. In betting that the potential economic fallout is worth the gains in border security, Trump is gambling with America’s long-term influence and prosperity.
Yes, U.S. federal law grants the president significant authority to impose tariffs without waiting for Congress to act. Under the International Emergency Economic Powers Act of 1977, a president who declares a national emergency over an external threat can regulate trade — though this has traditionally meant economic sanctions, not tariffs. Moreover, Section 232 of the Trade Expansion Act of 1962 empowers the executive to adjust imports when national security is at risk. Trump previously used this authority, in 2018, to levy tariffs on steel and aluminum imports from Canada, Mexico and the EU.
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