President Donald Trump has asserted that he can legally force U.S. companies from China based on a 1977 law called the International Emergency Economic Powers Act of 1977, according to the New York Times.
President Trump asserted on Saturday that he has the authority to make good on his threat to force all American businesses to leave China, citing a national security law that has been used mainly to target terrorists, drug traffickers and pariah states like Iran, Syria and North Korea.
As he arrived in France for the annual meeting of the Group of 7 powers, Mr. Trump posted a message on Twitter citing the International Emergency Economic Powers Act of 1977, a law originally meant to enable a president to isolate criminal regimes not sever economic ties with a major trading partner over a tariff dispute.
“For all of the Fake News Reporters that don’t have a clue as to what the law is relative to Presidential powers, China, etc., try looking at the Emergency Economic Powers Act of 1977,” Mr. Trump wrote. “Case closed!”
The president’s threat to all but cut off one of America’s most important trading relationships could disrupt a global economy already on the edge of recession amid his trade war while further unsettling giant companies in the United States that rely on China in their production and sale of everything from clothing to smart telephones.
Trump is willing to commence a global depression in order claim that he won his trade war with China. Americans are his hostages at this point.