Trump cited trade deficits, currency manipulation, and fentanyl trafficking as threats

On July 31, 2025, President Donald Trump defended his use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on imports from various countries, including a 10% baseline tariff and higher reciprocal tariffs, citing threats from trade deficits, currency manipulation, and issues like fentanyl trafficking.

He explained that he did not invoke IEEPA during his first term (2017–2021) due to other priorities, such as tax reform and trade deals, relying instead on other trade authorities.

Facing legal challenges questioning IEEPA’s application to trade policy, the tariffs, which raised the average U.S. tariff rate to 18.4%, have increased household costs by approximately $1,300 annually, according to economists.

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