Trump Stretches Trade Law Boundaries With New Tariffs

Use of emergency sanctions law to justify move likely to be challenged, say experts

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WASHINGTON - US President Donald Trump has pushed into new trade law territory with an emergency sanctions law to justify punishing 25 per cent tariffs on Canadian and Mexican imports, and an extra 10 per cent duty on Chinese goods, to curb fentanyl and illegal immigration into the US.

Trade and legal experts said the 1977 International Emergency Economic Powers Act (IEEPA) is untested for imposing import tariffs, and Mr Trump's action will likely face swift court challenges that could set important precedents.

As widely expected, Mr Trump declared a national emergency under IEEPA on Feb 1, citing the "extraordinary threat" from fentanyl and illegal immigration.

The law gives the President broad powers to impose economic and financial sanctions in times of crisis, including against Russia over its war in Ukraine.

IEEPA gave Mr Trump - in his second week of his second term in the White House - the fastest path to imposing tariffs, as trade laws he used in his first four years for duties on steel, aluminum and Chinese goods would have required months-long investigations and public consultations.