Two White House officials said President Donald Trump has the authority to ban American companies from doing business in China. Specifically, he could force them to move their operations out of China. However, there is nothing official from the US government.
White House economic director Larry Kudlow said the administration could make this decision at any time but no official order has been given at this time.
The government is recommending that American businesses and companies move their operations and supply chains out of China and back home to America.
Economic advisor Steven Mnuchin, in an interview with Fox News Sunday, made similar statements to Kudlow and said that the president has "many options.".
The whole debate around this issue started after a series of tweets made by Trump on Friday. Trump presented the idea of withdrawing from China as a mandate, not a request. Businesses should prepare for a prolonged trade war.
"Major American companies are ordered to immediately begin seeking alternatives, including moving companies back to America and manufacturing products in the United States."
“For all the fake journalists who have no idea about the law regarding presidential powers, China, etc., take a look at the Emergency Economic Powers Act of 1977. Case closed!”
According to White House officials, the law gives the government the right to force American companies to move their businesses and supply chains out of China.
Under the law, the US president has the authority to regulate the trade of American companies if a national emergency is declared against an “unusual and extraordinary threat.” Such a state of emergency would allow the president to regulate Americans’ transactions with foreign countries
Trump China during the trade war, but has yet to declare a state of emergency regarding Chinese trade.
