Signed into law on October 28, 1977 by then-President Jimmy Carter, the IEEPA is a United States federal law authorizing the tenant of the White House to regulate commerce after declaring a national emergency in response to a “unusual and extraordinary threat” for the national security of the United States, its foreign policy or its economy and which would be “entirely or partially of foreign origin”. This federal law also allows the president to block certain transactions and “confiscate” the assets of countries, companies or people who are linked or involved in this attack.
Already used after the attacks of September 11, 2001
After the attacks of September 11, 2001, this law was activated by George W. Bush to block the financial assets of terrorist organizations. And in May 2019, Trump had already hinted that he would use the powers of the IEEPA to massively tax Mexican imports in response to illegal immigration from his neighbor.
In short, the scope of this law is very broad, as is its margin of interpretation. How to decipher Trump’s strategy? Like the contours of his foreign policy which promises to be very muscular – let’s only think of the latest expansionist outings on Canada, Panama or Greenland – Donald Trump, by playing the threat card, therefore intends to immediately enter into a balance of power with its main commercial partners. And even if nothing has been decided at this stage to prove its determination to defend American interests at all costs, even if it means entering into a trade war scenario.
gullAs Winston Churchill said, you should always read what mad people write because they do what they say.
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For economist Bruno Colmant, an expert on American society, Donald Trump is not bluffing by making this threat. “We must take what Trump says very seriously. On January 22, we will move into another world. Because as Winston Churchill said, you should always read what mad people write because they do what they say. Trump is signing all the executive orders. He will have to act and he will not be able to soften afterwards. It will be very hard.”he explains to us. And he added that Trump’s very aggressive posture carries a contradiction since it should generate inflation for the American consumer, under the effect of the sharp increase in the prices of imported products. “But Trump will try to contain this inflation in a regulatory manner, in particular by preventing the American Federal Reserve from increasing these rates in an authoritarian and forced manner. This will allow Americans to continue to borrow at low rates.he adds.
“It’s the paradox. Those who voted for Donald Trump will be the first victims of his economic policies”
“We put the rope around our necks”
Faced with this American danger, what attitude should Europe adopt? “It will have to opt for an ultra-lax monetary policy with sharply lowered rates to maintain our export capacities. But Europe will also have to, like the United States, embark on a deregulation movement in a series of areas, such as finance, energy or ecological transition. Especially since certain countries in Europe such as Italy or Hungary will enter into bilateral agreements with the United States. The others, obedient to the restrictive framework of the European Union, risk collapsing under the weight of regulations. Look at what is happening in the automotive sector with the end of thermal engines in 2035: we have put a noose around our necks. By wanting to be virtuous, we have punished ourselves.”concludes Bruno Colmant.
