Trump could declare a national economic emergency to justify universal tariffs, CNN reports

President-elect Donald Trump is it considering calling a national economic emergency to implement its large-scale tariff policies, four sources familiar with the matter told CNN.

A declaration of this nature will give Trump the power to create the tariff program that has been a pinnacle of his campaign for the White House through the International Emergency Economic Powers Act, CNN reported. Also known as IEEPA, the act allows the president to oversee imports in a period of national crisis.

Stock futures weakened after the CNN report on Wednesday morning and the US dollar gained in value against most other currencies.

CNN sources noted that a final decision has not been reached on whether Trump will declare a national emergency. Trump’s team is also evaluating alternative legal arguments, such as pointing to specific sections of US trade law, according to the CNN report.

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

Trump launched tariffs on imports frequently during the campaign, to call sometimes for tariffs of 60% or more on Chinese products. Weeks after his victory, the Republican promised to increase tariffs on Chinese imports by 10% and slap 25% tariffs on products coming from Canada or Mexico.

The Washington Post reported on Monday that Trump narrows the focus of his tariffs, an approach Wall Street seems to favor. But the president-elect later denied that report.

Read CNN’s full story here.