The International Emergency Economic Powers Act (IEEPA), Title II of Pub.L. 95-223, 91 Stat. 1626, enacted October 28, 1977, is a United States federal law authorizing the U.S. Presidents to regulate commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States which has a foreign source.
Arguably, the situation in China rises to the level of an unusual and extraordinary threat to the economic stability and durability of the United States. The International Emergency Economic Powers Act ("IEEPA") is often used in conjunction with the Trading with the Enemy Act to impose sanctions against countries, individuals, and financial entities that do business with countries the United States deems an "enemy." Just this past summer, British heavy weight bank, Barclays, was hit with a major lawsuit by the Justice Department for trading with the enemies (Sudan, Cuba, Iran, Sudan, Libya and Burma) and was made to pay nearly $300 million in fines.
The only trouble is, making China an "enemy" seems fraught with economic peril not just for the United States, but for the rest of the world. Thus, President Obama should think twice before he invokes this weapon against this "enemy."
Well, actually, China is not an enemy of the United States, is it? China is more like a frenemy of the United States. Whatever the status, though, President Obama must proceed with caution on this one.
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