CNN reports that Trump could declare an economic emergency to justify introducing universal tariffs

President-elect Donald Trump Is considering declaring a state of emergency in the national economy implement its sweeping tariff policy, four sources familiar with the matter told CNN.

According to CNN, such a declaration would give Trump the authority to create a tariff program, which he made the culmination of his campaign for the White House through the International Emergency Economic Powers Act. The act, also known as IEEPA, allows the president to oversee imports during times of national crisis.

Stock futures weakened following CNN's report on Wednesday morning, and the U.S. dollar appreciated against most other currencies.

CNN sources noted that no final decision has been made yet on whether Trump will declare a national emergency. According to CNN, Trump's team is also evaluating alternative legal arguments, such as pointing to specific sections of US trade law.

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

During the campaign, Trump frequently imposed taxes on imports, vocation sometimes charging fees of 60% or more for Chinese products. A few weeks after the Republican victory he vowed increase tariffs on Chinese imports by 10% and impose 25% tariffs on products originating in Canada or Mexico.

Washington Post. reported on Monday that Trump will narrow the scope of his tariffs, which appears to favor Wall Street's approach. However, the president-elect later denied these reports.

Read the full CNN article here.