WEBVTT - SCOTUS Dubious About Trump Tariffs

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<v Speaker 1>This is Bloomberg Law with June Grosseo from Bloomberg Radio.

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<v Speaker 2>It's one of the most important cases of the term,

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<v Speaker 2>a test of presidential power where President Trump's signature economic

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<v Speaker 2>policy is at stake. After nearly three hours of oral arguments,

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<v Speaker 2>it appears that a majority of Supreme Court justices across

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<v Speaker 2>the ideological spectrum are skeptical that Trump has the legal

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<v Speaker 2>authority to impose billions of dollars of tariffs on goods

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<v Speaker 2>from nearly every country. Chief Justice John Roberts and Justice

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<v Speaker 2>Sonya Sotomayor said, the tariffs are taxes, and the Constitution

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<v Speaker 2>gives taxing power to Congress.

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<v Speaker 3>It's a congressional power, not a presidential power to tax.

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<v Speaker 3>And you want to say tarifts are not taxes, but

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<v Speaker 3>that's exactly what they are, degenerating money from American citizens revenue.

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<v Speaker 4>The vehicle is in position of taxes on Americans, and

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<v Speaker 4>that has always been the core power of Congress.

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<v Speaker 2>Trump is arguing that an emergency powers law, the International

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<v Speaker 2>Emergency Economic Powers Act, or AIPA, authorizes him to collect

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<v Speaker 2>tens of billions of dollars in tariffs a month. AIPA

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<v Speaker 2>gives the president an array of tools to address national security,

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<v Speaker 2>foreign policy, and economic emergencies. But it doesn't mention tariffs,

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<v Speaker 2>something many of the justices work quick to point out.

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<v Speaker 2>Here are the Chief Justice and Justice Katanji Brown Jackson.

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<v Speaker 5>But when I read the statute, it is telling the

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<v Speaker 5>president exactly what he can do investigate, block during the

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<v Speaker 5>pendency of an investigation, regulate, direct, and compel, mullify, void,

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<v Speaker 5>prevent or prohibit. And I guess what is a little

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<v Speaker 5>concerning to me is that your argument suggests that we

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<v Speaker 5>should see the word imposed, the phrase impose tariffs in

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<v Speaker 5>that se series of things that the president could do.

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<v Speaker 5>We don't see that word.

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<v Speaker 4>Well, but the exercise of the power is to impose tariffs, right,

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<v Speaker 4>and the statute doesn't use the word tariffs.

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<v Speaker 2>And Justice Neil gorse At, a Trump appointee, expressed alarm

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<v Speaker 2>at giving seemingly limitless power to presidents.

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<v Speaker 6>So Congress is a practical matter. Can't get this power

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<v Speaker 6>back once it's handed it over to the President's a

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<v Speaker 6>one way ratchet towards the gradual but continual accretion of

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<v Speaker 6>power in the executive branch and away from the people's

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<v Speaker 6>elected representative.

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<v Speaker 2>My guest is constitutional law expert Michael Dorff, a professor

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<v Speaker 2>at Cornell Law School. Mike, give me your broad take

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<v Speaker 2>on the oral arguments.

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<v Speaker 7>It was difficult to handicap.

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<v Speaker 1>It's clear to me that the three Democratic appointees are

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<v Speaker 1>going to vote to a firm and rule for the plaintiffs.

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<v Speaker 1>Justice Thomas and almost certainly Justice Alito are going to

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<v Speaker 1>rule for the government. I think Justice Kavanaugh pretty strongly

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<v Speaker 1>leans towards the government, and then the Chief Justice and

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<v Speaker 1>Justices Gorosach and Barrett are harder to handicap because Gorisiach

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<v Speaker 1>and Barrett especially asked difficult questions of each side, and

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<v Speaker 1>I kind of have a theory of what each one

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<v Speaker 1>of them is thinking, but it's it's very difficult to say.

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<v Speaker 1>So I come out of this really quite uncertain as

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<v Speaker 1>to what they're going to do.

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<v Speaker 2>So a good deal of the argument consisted of an

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<v Speaker 2>analysis of the text of AIPA. Several justices quizzed the

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<v Speaker 2>Solicitor General on the text not mentioning tariffs. How do

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<v Speaker 2>you think the Solicitor General handled that?

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<v Speaker 1>Yeah, I thought He's stuck with his core argument, which

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<v Speaker 1>has a number of moving pieces. The first is that

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<v Speaker 1>the term regulate importation can include tariffs just as a

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<v Speaker 1>matter of ordinary language.

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<v Speaker 7>That's certainly true.

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<v Speaker 1>He also relied on historical understandings dating back to the

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<v Speaker 1>founding for some reason to think that that's how the

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<v Speaker 1>word was understood. And he has a couple of modern cases.

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<v Speaker 1>He's got the Nixon president under the Trading with the

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<v Speaker 1>Enemy Act, and he's got another related case. I thought

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<v Speaker 1>he had the hardest time dealing with what is really

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<v Speaker 1>the plaintiff's best argument, and that is that when Congress

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<v Speaker 1>has wanted to give the president tariff authority, it has

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<v Speaker 1>said so expressly in lots of other statutes, and so

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<v Speaker 1>the omission in this statute does seem to be rather glaring.

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<v Speaker 1>So I thought he did a perfectly fine job basically

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<v Speaker 1>rehashing what was in his brief.

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<v Speaker 2>It seemed to me like some of the justices weren't

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<v Speaker 2>satisfied with Sour's answers, particularly Justice Amy Coney Barrett. You know,

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<v Speaker 2>she kept pressing him and just a soda mayor said

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<v Speaker 2>answer the question.

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<v Speaker 7>Yeah.

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<v Speaker 1>So that was an important exchange, and I thought that

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<v Speaker 1>Justice Barrett wasn't being quite fair to his argument, right,

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<v Speaker 1>which was he said not only that did Nixon impose this,

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<v Speaker 1>but a Court of Appeals found that Nixon had the authority.

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<v Speaker 1>It's true of the Supreme Court denied assert and then

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<v Speaker 1>Justice Barrett said, well, it's just an intermediate court of appeals. Well,

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<v Speaker 1>that's true, But his argument is not that that ruling

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<v Speaker 1>is binding on the Supreme Court. His argument is that

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<v Speaker 1>when Congress copied the language from the Trading with the

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<v Speaker 1>Enemy Act into the International Economic Emergency's Powers Act, it

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<v Speaker 1>was aware that President Nixon had used this for tariff

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<v Speaker 1>authority and that that had been affirmed, and so we

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<v Speaker 1>should attribute to Congress an intention to carry over the

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<v Speaker 1>meaning that had recently been on display.

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<v Speaker 7>That's not a bad argument.

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<v Speaker 1>My own view is that it should fail because even

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<v Speaker 1>a good textualist care about how Congress has used the

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<v Speaker 1>terms elsewhere, but just sort of standing on its own.

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<v Speaker 1>I thought his reliance on the Nixon president was pretty sensible.

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<v Speaker 2>Justice Neil Gorsuch question the Solicitor General for something like

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<v Speaker 2>ten minutes. Some of the questioning seemed a little bit hostile.

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<v Speaker 2>He questioned him about the extent of the authority Trump

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<v Speaker 2>is claiming, saying, well, then can Congress just say we're

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<v Speaker 2>tired of legislating or hand it off even the power

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<v Speaker 2>to declare war to the president. I mean, he seemed

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<v Speaker 2>more aggressive than most of the other justices in questioning

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<v Speaker 2>the Solicitor General.

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<v Speaker 1>Yeah, I think that's right, and I think it lines

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<v Speaker 1>up with Justice Garsuch's priors, which are very suspicious of

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<v Speaker 1>broad delegations to the executive branch. He actually got a

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<v Speaker 1>concession out of the Solicitor General. The SG sort of

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<v Speaker 1>began by saying that neither the non delegation.

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<v Speaker 7>Doctrine nor the Major.

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<v Speaker 1>Questions doctrine applies with respect to the president's foreign affairs.

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<v Speaker 7>Power, and pressing him.

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<v Speaker 1>Justice Grocich got him to back off of that when

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<v Speaker 1>he said, well, what if Congress just gave the president

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<v Speaker 1>all of its power to regulate foreign commerce, you know,

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<v Speaker 1>do whatever you want. We're sick of it all of

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<v Speaker 1>its power more generally, you know, could he do anything

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<v Speaker 1>at all in international affairs? And soer basically said, well, no,

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<v Speaker 1>that would be different in so of coursious.

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<v Speaker 7>How could it be different? You said that it doesn't

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<v Speaker 7>apply at all in.

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<v Speaker 1>Foreign affairs, And so then I thought Justice Garsuch did

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<v Speaker 1>a nice job of saying, So, what you're saying is

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<v Speaker 1>it applies more deferentially. But the intelligible principal test, which

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<v Speaker 1>Justice Gorsuch doesn't like, is already very deferential. You're going

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<v Speaker 1>to say it's even more deferential than that. So based

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<v Speaker 1>on that exchange, I initially had Justice Garsage in the

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<v Speaker 1>sort of plaintiff's column, but then on the other side

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<v Speaker 1>he was pressing Neil Kattil very hard on us. The text, right,

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<v Speaker 1>So if you just look at the text, it does

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<v Speaker 1>seem to encompass tariff authority. And there in the same

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<v Speaker 1>way that I thought it was interesting that the SG

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<v Speaker 1>backed off a little bit. I thought Katyo would have

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<v Speaker 1>been better served if he had backed off a little

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<v Speaker 1>bit and just simply said, yeah, you're right, if you

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<v Speaker 1>look at the text in isolation, it does encompass this power.

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<v Speaker 1>But that's never how the discourt looks at datutory text,

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<v Speaker 1>and it shouldn't in this case.

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<v Speaker 2>Well, let me ask you this, as some of the

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<v Speaker 2>justices porning out Congress knew how to write the word tariff.

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<v Speaker 2>They wanted tariffs to be included in all these other powers,

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<v Speaker 2>why not just put it there?

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<v Speaker 7>Right?

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<v Speaker 1>I think that is sort of the core common sense

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<v Speaker 1>argument that the plaintiffs have, and it's a very good one,

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<v Speaker 1>and I thought it was going to prevail. That. What

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<v Speaker 1>leads me to be a little less certain about that

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<v Speaker 1>is the turn the argument took near the end of

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<v Speaker 1>Katyo's presentation, when a combination of Justice Barrett and some

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<v Speaker 1>of her colleagues pressed on what she said she wasn't

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<v Speaker 1>calling but really was calling a greater includes the lesser power, right,

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<v Speaker 1>which is, well, look, Congress clearly gave the president the

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<v Speaker 1>power to ban all trade with any and all foreign countries,

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<v Speaker 1>because that's the plain meaning of some of the terms

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<v Speaker 1>that are in the statute, and that's an enormous delegation.

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<v Speaker 1>If Congress did that, why would Congress want to deny

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<v Speaker 1>to the president the much lesser power to just say, well,

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<v Speaker 1>you can have trade with us, but it's going to

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<v Speaker 1>be subject to some tariff and that Therefore, maybe Congress

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<v Speaker 1>didn't mean to exclude tariffs. Maybe they just thought it

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<v Speaker 1>was encompassed within the term regulate. So that's what gave

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<v Speaker 1>me some pause, because that's also not a crazy argument.

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<v Speaker 1>I do think, and I'm going to put this on

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<v Speaker 1>my blog tomorrow, that the way out of that, at

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<v Speaker 1>least for Justice Gorsuch, may be that in so far

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<v Speaker 1>as this law seems to give the president the power

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<v Speaker 1>to declare an emergency whenever he wants and then to

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<v Speaker 1>ban all foreign trade or to do some subset of it.

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<v Speaker 1>That's a violation of the non delegation doctrine. And therefore

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<v Speaker 1>you can't read the statute that broadly, and we can

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<v Speaker 1>deal with a ban on all trade when that comes up,

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<v Speaker 1>or you can say the president's declaration of an emergency

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<v Speaker 1>is subject to some substantial review by the Supreme Court.

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<v Speaker 1>There was a point earlier here in the argument when

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<v Speaker 1>Justice Kagan was saying, we're going to review only very deferentially,

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<v Speaker 1>the president's decision that there's an emergency.

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<v Speaker 7>But you know, I mean, let's be frank here, there

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<v Speaker 7>is no emergency. At one point sour said, well, you know,

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<v Speaker 7>there's an existential threat, and it's not clear what he

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<v Speaker 7>was talking about. Then he said, well, fentanyl is an

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<v Speaker 7>existential threat. Well, even if fentyl is an existential threat,

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<v Speaker 7>and of course it is to people who are at

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<v Speaker 7>risk of overdosing on.

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<v Speaker 1>It, there's no indication whatsoever that that was a legitimate

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<v Speaker 1>justification for the tariffs on Canada, which is one of

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<v Speaker 1>the reasons why it was invoked. You know, we get

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<v Speaker 1>less than one percent of fentanyl from Canada, and you

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<v Speaker 1>know Soalar also pointed to the fact that when President

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<v Speaker 1>Trump was recently in Asia, he in Jijenping agreed to

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<v Speaker 1>some reduction in Chinese precursor chemicals coming over for feednyl.

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<v Speaker 7>You know, that's not.

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<v Speaker 1>A trade agreement, it was an agreement to discuss. So

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<v Speaker 1>there's all of this stuff in the background that seems

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<v Speaker 1>kind of detached from reality, and that the background as

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<v Speaker 1>well the president's you know, conducting foreign policy. The president

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<v Speaker 1>is you know, just imposing tariff's willy nilly because he

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<v Speaker 1>doesn't like, you know, some commercial that was run by

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<v Speaker 1>the government of Ontario, because he doesn't like that Brazil

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<v Speaker 1>is enforcing the law against Bolsonaro, whom he sees as

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<v Speaker 1>a kindred spirit. The notion that this president is exercising

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<v Speaker 1>this power in any way that remotely relates to legitimate

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<v Speaker 1>emergencies is just fanciful. And to me, the question is like,

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<v Speaker 1>will that break through at all or are they going

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<v Speaker 1>to do what they did in the immunity case and

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<v Speaker 1>pretend that Trump is a normal president.

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<v Speaker 2>Coming up next, I'll continue this conversation with Cornell Law

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<v Speaker 2>professor Michael, or what about the major questions doctrine that

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<v Speaker 2>the Court used to block many of President Joe Biden's initiatives.

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<v Speaker 2>This is bloomberg. It's the biggest legal test yet of

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<v Speaker 2>President Donald Trump's economic agenda, and a majority of Supreme

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<v Speaker 2>Court justices signaled some skepticism today about his power to

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<v Speaker 2>unilaterally impose sweeping tariffs. Trump says his tariffs are authorized

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<v Speaker 2>under the nineteen seventy seven International Emergency Economic Powers Act,

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<v Speaker 2>which gives him broad authority to set and change import

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<v Speaker 2>duties in an emergency. But Justice Elena Kagan questioned the

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<v Speaker 2>Solicitor General John Sower about the declared emergencies, referring to

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<v Speaker 2>the many cases the administration has brought to the Court

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<v Speaker 2>on an emergency basis since Trump took office.

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<v Speaker 5>And you know, we've had cases recently which deals with

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<v Speaker 5>the president's emergency powers. And it turns out we're in

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<v Speaker 5>emergencies everything all the time, about half the world. Well,

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<v Speaker 5>this particular emergency is particularly existential, as Executive Order fourteen

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<v Speaker 5>two five seven says, And of course no one disputes

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<v Speaker 5>the existential nature of the federal crisis.

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<v Speaker 2>I've been talking to Cornell Law School Professor Michael Darf, So,

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<v Speaker 2>let's talk about the Major Questions doctrine, which came up

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<v Speaker 2>over and over, and at one point Justice Gorsuch told

0:13:20.880 --> 0:13:24.680
<v Speaker 2>Neil Katiau, the attorney for the small businesses, I don't

0:13:24.720 --> 0:13:28.400
<v Speaker 2>think you can win without it. And Chief Justice John

0:13:28.480 --> 0:13:32.000
<v Speaker 2>Roberts indicated that he saw the case as being governed

0:13:32.559 --> 0:13:34.800
<v Speaker 2>by the Major Questions doctrine.

0:13:35.360 --> 0:13:35.560
<v Speaker 7>Yeah.

0:13:35.600 --> 0:13:39.200
<v Speaker 1>So the Major Questions doctrine originates in some cases a

0:13:39.200 --> 0:13:42.520
<v Speaker 1>couple of decades ago, but it really took its current

0:13:42.559 --> 0:13:44.280
<v Speaker 1>shape in a case from a few years ago called

0:13:44.320 --> 0:13:49.160
<v Speaker 1>West Virginia against EPA. And the basic idea is that

0:13:49.200 --> 0:13:54.600
<v Speaker 1>if you've got a statute that the federal executive brand

0:13:54.679 --> 0:13:59.840
<v Speaker 1>or the president claims gives them the power to regulate

0:14:00.280 --> 0:14:04.079
<v Speaker 1>some gigantic area, like a big portion of the economy

0:14:04.280 --> 0:14:09.319
<v Speaker 1>or which is clearly going on here, then the president

0:14:09.720 --> 0:14:14.480
<v Speaker 1>needs to point to specific authorization for what he's doing

0:14:14.559 --> 0:14:18.079
<v Speaker 1>in the statute. It's a way of reading the statute

0:14:18.080 --> 0:14:22.680
<v Speaker 1>to say, we're not going to presume that Congress delegated

0:14:23.280 --> 0:14:27.359
<v Speaker 1>enormous power to the president unless Congress did so clearly.

0:14:27.880 --> 0:14:29.520
<v Speaker 7>So, in lawyers.

0:14:29.080 --> 0:14:31.600
<v Speaker 1>Speak, the Major Questions doctrine can be understood as a

0:14:31.680 --> 0:14:33.360
<v Speaker 1>kind of clear statement rule.

0:14:34.480 --> 0:14:35.920
<v Speaker 7>So that's the background.

0:14:35.920 --> 0:14:39.320
<v Speaker 1>Now there's a there's a kind of technical debate between

0:14:40.000 --> 0:14:44.680
<v Speaker 1>different justices about what exactly the major questions doctrine is.

0:14:45.200 --> 0:14:48.960
<v Speaker 1>So Justice Barrett has said that she thinks it is

0:14:49.040 --> 0:14:52.840
<v Speaker 1>simply an interpretive canon. That is to say, it's out there.

0:14:52.880 --> 0:14:56.000
<v Speaker 1>It's a way of us figuring out what Congress actually

0:14:56.000 --> 0:15:01.520
<v Speaker 1>intended in this statute, because you know, Congress statutes where

0:15:01.560 --> 0:15:04.640
<v Speaker 1>they have, you know, meant to give all this power

0:15:04.640 --> 0:15:09.160
<v Speaker 1>without saying explicitly. So it relates back to something Justice

0:15:09.280 --> 0:15:12.720
<v Speaker 1>Scalia said in a much earlier case, which is, Congress

0:15:12.760 --> 0:15:16.160
<v Speaker 1>doesn't hide elephants in mouseholes, right, just a basic idea

0:15:16.160 --> 0:15:19.800
<v Speaker 1>of how you get at what Congress intended. That's one

0:15:19.880 --> 0:15:22.680
<v Speaker 1>view of the major questions doctrine. Another view of the

0:15:22.720 --> 0:15:25.040
<v Speaker 1>Major Questions doctrine is that it is a kind of

0:15:25.680 --> 0:15:32.280
<v Speaker 1>subconstitutional way of implementing the non delegation doctrine, the notion

0:15:32.600 --> 0:15:36.200
<v Speaker 1>that Congress can't give away its lawmaking power. It's got

0:15:36.200 --> 0:15:39.280
<v Speaker 1>to provide an intelligible principle. And so if there's some

0:15:39.560 --> 0:15:44.880
<v Speaker 1>very you know, monumental exercise of power, we're not going

0:15:44.920 --> 0:15:48.240
<v Speaker 1>to see Congress as having given that to the president

0:15:48.680 --> 0:15:52.000
<v Speaker 1>without explicit language, because the explicit language is what will

0:15:52.000 --> 0:15:55.360
<v Speaker 1>provide the intelligible principle. In the absence of that, we

0:15:55.400 --> 0:15:57.800
<v Speaker 1>will just assume the power hasn't been delegated. That's what

0:15:57.840 --> 0:15:59.840
<v Speaker 1>I mean by saying that it's related to this constitutional

0:16:00.840 --> 0:16:05.440
<v Speaker 1>So there's that debate. At one point, Neil Katyel seemed

0:16:05.480 --> 0:16:08.120
<v Speaker 1>to lean into the Barrett position to say, well, it's

0:16:08.160 --> 0:16:10.280
<v Speaker 1>just a matter of figuring out what Congress was up to.

0:16:10.800 --> 0:16:12.880
<v Speaker 1>Doesn't really matter for this case that he can he

0:16:12.920 --> 0:16:16.120
<v Speaker 1>can win regardless of what the nature of the Major

0:16:16.200 --> 0:16:20.400
<v Speaker 1>Questions doctrine is. When just as Gorsuch said to him,

0:16:20.480 --> 0:16:23.000
<v Speaker 1>I don't think you can win about the Major Questions doctrine.

0:16:23.280 --> 0:16:27.880
<v Speaker 1>I think what he was getting at was that the statute,

0:16:28.000 --> 0:16:32.280
<v Speaker 1>just taken at face value, uses the word regulate, which

0:16:32.440 --> 0:16:35.720
<v Speaker 1>historically has, at least in some contexts, included the power

0:16:35.760 --> 0:16:39.160
<v Speaker 1>to impose tariffs. I should say I think Justice Gorsach

0:16:39.200 --> 0:16:41.160
<v Speaker 1>is wrong about that. I mean, he might be right

0:16:41.200 --> 0:16:44.680
<v Speaker 1>as a prediction that, but I think he's wrong in that.

0:16:45.160 --> 0:16:49.560
<v Speaker 1>I think Katyl has a good argument that we don't

0:16:49.600 --> 0:16:53.400
<v Speaker 1>need the Major Questions doctrine, but we also don't. We

0:16:53.760 --> 0:16:57.160
<v Speaker 1>never read a statute literally and in isolation. That is

0:16:57.200 --> 0:17:00.920
<v Speaker 1>the text of the statute read against the backdrop of

0:17:01.000 --> 0:17:04.200
<v Speaker 1>all these other statutes Congress has enacted where it use

0:17:04.280 --> 0:17:08.120
<v Speaker 1>the word tariff or duty or custom or something like that,

0:17:09.080 --> 0:17:12.280
<v Speaker 1>and didn't use it here, tells us about the literal

0:17:12.359 --> 0:17:14.960
<v Speaker 1>meaning of the language here, So that I think there

0:17:15.000 --> 0:17:17.200
<v Speaker 1>is a textualist answer that doesn't rely on the Major

0:17:17.240 --> 0:17:20.240
<v Speaker 1>Questions doctrine that under which the plaintiffs win.

0:17:20.840 --> 0:17:23.879
<v Speaker 7>But you know, I'm just making an assessment.

0:17:24.119 --> 0:17:26.520
<v Speaker 1>If Justice Scurtius thinks that they can't win without the

0:17:26.520 --> 0:17:30.000
<v Speaker 1>Major Questions doctrine, then that suggests that if Cato is

0:17:30.040 --> 0:17:31.960
<v Speaker 1>going to win, it's going to be with the Major

0:17:32.040 --> 0:17:32.920
<v Speaker 1>Questions doctrine.

0:17:33.119 --> 0:17:37.320
<v Speaker 2>So, I mean, the conservative justices use the Major Questions

0:17:37.400 --> 0:17:42.720
<v Speaker 2>doctrine to block President Biden in his initiatives on student

0:17:42.800 --> 0:17:48.720
<v Speaker 2>loan forgiveness, coronavirus vaccine mandates, and climate change. How would

0:17:48.760 --> 0:17:53.520
<v Speaker 2>they reconcile it if they allow President Trump to exercise

0:17:53.800 --> 0:17:57.399
<v Speaker 2>sweeping emergency powers with these global tariffs.

0:17:58.240 --> 0:18:00.000
<v Speaker 7>Right, Well, so if they want.

0:17:59.920 --> 0:18:01.880
<v Speaker 2>To reconcile it, I guess right.

0:18:01.760 --> 0:18:04.600
<v Speaker 1>So the short answer is I don't think they can

0:18:04.720 --> 0:18:07.879
<v Speaker 1>in a way that is persuasive to me. But you know,

0:18:08.000 --> 0:18:12.680
<v Speaker 1>before the Supreme Court overruled the doctrine of Chevron deference

0:18:12.680 --> 0:18:15.239
<v Speaker 1>to administrative agencies in the Lower Bright case a year

0:18:15.280 --> 0:18:19.399
<v Speaker 1>and a half ago. Even then, there was a lot

0:18:19.440 --> 0:18:25.240
<v Speaker 1>of scholarship showing, I think, persuasively that the real meaning

0:18:25.240 --> 0:18:28.600
<v Speaker 1>of the Chevron defference doctrine was the Court deferred to

0:18:28.720 --> 0:18:32.920
<v Speaker 1>decisions it liked and didn't defer to decisions it didn't.

0:18:32.720 --> 0:18:35.960
<v Speaker 7>Like, and that had a political balance to it.

0:18:36.760 --> 0:18:39.199
<v Speaker 1>I think it would be child's play to write an

0:18:39.200 --> 0:18:41.200
<v Speaker 1>opinion here that says, of course, we have the major

0:18:41.280 --> 0:18:44.719
<v Speaker 1>questions doctrine, and what that requires is a clear delegation.

0:18:44.920 --> 0:18:48.080
<v Speaker 1>Here there is a clear delegation because regulate historically has

0:18:48.119 --> 0:18:51.840
<v Speaker 1>included the power to have tariffs and so forth. Right,

0:18:52.080 --> 0:18:55.840
<v Speaker 1>that is the threshold for applying the Major Questions doctrine

0:18:56.119 --> 0:19:00.359
<v Speaker 1>is a finding that Congress didn't clearly delegate. So they

0:19:00.359 --> 0:19:02.720
<v Speaker 1>would just say, well, Congress here in the text clearly

0:19:02.760 --> 0:19:05.000
<v Speaker 1>did delegate. I'm not saying that would be persuasive, but

0:19:05.040 --> 0:19:06.399
<v Speaker 1>I think that's that's what they would do.

0:19:06.680 --> 0:19:10.200
<v Speaker 2>And where did the you mentioned the non delegation doctrine?

0:19:11.280 --> 0:19:12.560
<v Speaker 2>Will that play in here.

0:19:13.200 --> 0:19:17.600
<v Speaker 1>Oh sure, So, I mean that's that was the line

0:19:17.600 --> 0:19:21.120
<v Speaker 1>of questioning that Neil that Justice Courses was pursuing against

0:19:21.119 --> 0:19:24.480
<v Speaker 1>the Solicitor General, which is, he wanted him to get

0:19:24.480 --> 0:19:27.800
<v Speaker 1>this SG to admit and successfully got him to admit

0:19:28.280 --> 0:19:34.680
<v Speaker 1>that under the government's theory of the case, Congress could

0:19:35.040 --> 0:19:39.560
<v Speaker 1>give to the president the authority to regulate the entire

0:19:39.600 --> 0:19:43.440
<v Speaker 1>economy if if there's any non delegation doctrine at all, Right,

0:19:43.560 --> 0:19:47.280
<v Speaker 1>there's no intelligible principle of Congress saying hey, if you

0:19:47.320 --> 0:19:49.359
<v Speaker 1>think it's a good idea, do whatever you want with

0:19:49.440 --> 0:19:52.960
<v Speaker 1>respect to foreign trade. And that's why sour the SG

0:19:53.119 --> 0:19:57.120
<v Speaker 1>eventually backed off of this position that there's no non

0:19:57.160 --> 0:19:58.639
<v Speaker 1>delegation doctrine in this area.

0:19:59.240 --> 0:20:04.120
<v Speaker 2>So you wouldn't be surprised then, if the court ends

0:20:04.200 --> 0:20:10.399
<v Speaker 2>up upholding Trump's ability to impose these tariffs undra AIPA.

0:20:10.040 --> 0:20:12.080
<v Speaker 7>I wouldn't be surprised with the result either way.

0:20:12.280 --> 0:20:16.919
<v Speaker 1>Again, as I said, I think that the given my priors,

0:20:17.119 --> 0:20:20.080
<v Speaker 1>I thought that the result of the argument is that

0:20:20.119 --> 0:20:22.679
<v Speaker 1>the plaintiffs should win. That's what I thought before the argument,

0:20:23.000 --> 0:20:27.840
<v Speaker 1>and I was heartened by the questions that at least

0:20:27.840 --> 0:20:31.200
<v Speaker 1>three of the conservative justices asked of the Solicitor General.

0:20:31.880 --> 0:20:35.560
<v Speaker 1>But this turn that the argument took near the end

0:20:36.280 --> 0:20:39.000
<v Speaker 1>suggests to me that it's certainly not a sure thing.

0:20:39.920 --> 0:20:43.120
<v Speaker 2>Anything else that struck you, Mike one thing.

0:20:43.560 --> 0:20:45.760
<v Speaker 1>So in my preview of the case on my blog

0:20:46.000 --> 0:20:52.000
<v Speaker 1>on Monday, I pointed to some remarkable statements very early

0:20:52.280 --> 0:20:57.200
<v Speaker 1>in the government's opening brief, quoting President Trump about how

0:20:57.200 --> 0:21:01.719
<v Speaker 1>magnificent these tariffs are. And I thought that was potentially

0:21:01.800 --> 0:21:06.800
<v Speaker 1>counterproductive because you know, it included, you know, typical Trumpian

0:21:06.880 --> 0:21:09.199
<v Speaker 1>rhetoric about how our country is, you know, going to

0:21:09.240 --> 0:21:11.960
<v Speaker 1>hell in a handbasket, and you know, thanks to me

0:21:12.040 --> 0:21:16.119
<v Speaker 1>and my beautiful tariffs, everything's working out. But if you

0:21:16.280 --> 0:21:19.680
<v Speaker 1>get rid of this, it'll be, you know, armageddon. I'm

0:21:19.680 --> 0:21:22.840
<v Speaker 1>not really exaggerating much. That's not using literal language, and

0:21:23.280 --> 0:21:25.360
<v Speaker 1>you know, it's just it was over the top rhetoric,

0:21:25.440 --> 0:21:28.600
<v Speaker 1>and it was also economically illiterate, right, the claim that

0:21:28.640 --> 0:21:32.680
<v Speaker 1>this is doing wondrous for the economy. And I noticed

0:21:32.800 --> 0:21:36.359
<v Speaker 1>during the course of the argument that Sour would occasionally

0:21:36.440 --> 0:21:39.800
<v Speaker 1>give versions of that not quite as over the top

0:21:39.840 --> 0:21:40.320
<v Speaker 1>as in the.

0:21:40.280 --> 0:21:43.400
<v Speaker 7>Brief, and he seemed to get no reaction at all.

0:21:43.280 --> 0:21:46.920
<v Speaker 1>From any of the justices except for Justice Kavanaugh, who

0:21:46.960 --> 0:21:51.080
<v Speaker 1>did seem to give some credit to Trump forgetting various

0:21:51.119 --> 0:21:56.359
<v Speaker 1>policies adopted In virtuous He pointed to the India tariffs

0:21:56.600 --> 0:22:00.000
<v Speaker 1>as serving you know, the foreign policy goal of getting

0:22:00.160 --> 0:22:04.720
<v Speaker 1>Russia to change its stand in the war against Ukraine,

0:22:05.280 --> 0:22:09.320
<v Speaker 1>and you know the effect on the fentnal precursors with China.

0:22:09.880 --> 0:22:13.040
<v Speaker 1>But for the most part, it struck me that the

0:22:13.080 --> 0:22:15.480
<v Speaker 1>reality of what's going on, which is, you know, this

0:22:15.640 --> 0:22:18.960
<v Speaker 1>mad king randomly imposing tariffs and then taking them off

0:22:19.040 --> 0:22:19.520
<v Speaker 1>because of.

0:22:19.480 --> 0:22:21.520
<v Speaker 7>His whims, didn't really penetrate.

0:22:21.880 --> 0:22:24.320
<v Speaker 1>And I think that's probably good for the government's case,

0:22:24.440 --> 0:22:26.960
<v Speaker 1>because the more that you look at what's really going

0:22:27.000 --> 0:22:29.240
<v Speaker 1>on here, the less it looks like any kind of

0:22:29.280 --> 0:22:30.160
<v Speaker 1>sensible policy.

0:22:30.800 --> 0:22:33.200
<v Speaker 2>We'll see what the decision is. Thanks so much, Mike.

0:22:33.640 --> 0:22:37.399
<v Speaker 2>That's Professor Michael Dorf of Cornell Law School. Coming up

0:22:37.440 --> 0:22:39.800
<v Speaker 2>next on the Bloomberg Lawn Show, we'll talk to a

0:22:39.840 --> 0:22:44.680
<v Speaker 2>trade lawyer about the oral arguments. The US Supreme Court

0:22:44.760 --> 0:22:49.960
<v Speaker 2>appeared skeptical of President Donald Trump sweeping global tariffs, as

0:22:50.040 --> 0:22:54.399
<v Speaker 2>key Justice Is suggested he'd overstepped his authority with his

0:22:54.560 --> 0:22:59.520
<v Speaker 2>signature economic policy. My guest is Timothy Bright Bell, partner

0:22:59.520 --> 0:23:03.200
<v Speaker 2>and coach of the International Trade practice at Wiley Rhein.

0:23:03.960 --> 0:23:06.600
<v Speaker 2>Tim tell us what's at stake in this case.

0:23:07.400 --> 0:23:13.480
<v Speaker 8>This case involves the centerpiece of President Trump's economic agenda.

0:23:13.760 --> 0:23:16.399
<v Speaker 8>This argument is the biggest trade case the Supreme Court

0:23:16.400 --> 0:23:19.720
<v Speaker 8>has ever heard, and it goes straight to the key

0:23:19.760 --> 0:23:24.000
<v Speaker 8>constitutional issue of who has the power to impose tariffs,

0:23:24.480 --> 0:23:28.240
<v Speaker 8>the US Congress or the president. President Trump says the

0:23:28.320 --> 0:23:32.639
<v Speaker 8>law that he used, the International Emergency Economic Powers Act,

0:23:32.840 --> 0:23:36.159
<v Speaker 8>gives him the power to regulate imports, and that that

0:23:36.480 --> 0:23:43.040
<v Speaker 8>includes the power to impose tariffs, including fentanyl tariffs on China, Canada,

0:23:43.080 --> 0:23:47.000
<v Speaker 8>and Mexico, and reciprocal economic tariffs on almost all countries.

0:23:47.200 --> 0:23:49.680
<v Speaker 8>Whereas the plaintiffs in this case say that Congress has

0:23:49.720 --> 0:23:53.640
<v Speaker 8>that power and cannot delegate that power, and that AIPA,

0:23:54.240 --> 0:23:57.680
<v Speaker 8>which has never before been used to impose tariffs, does

0:23:57.720 --> 0:24:01.320
<v Speaker 8>not include that power and authority. So that is what

0:24:01.440 --> 0:24:05.520
<v Speaker 8>is at stake. And of course the tariffs under AEPA

0:24:05.600 --> 0:24:08.760
<v Speaker 8>have led to collection of hundreds of billions of dollars

0:24:08.840 --> 0:24:12.760
<v Speaker 8>of tariffs already, so it's very high economic stakes for

0:24:12.920 --> 0:24:16.600
<v Speaker 8>the companies and industries that have paid those tariffs as well.

0:24:16.720 --> 0:24:20.960
<v Speaker 2>Let's talk about some of the analysis during the oral arguments,

0:24:21.119 --> 0:24:25.159
<v Speaker 2>and you know, there's always a textual analysis these days,

0:24:25.680 --> 0:24:28.720
<v Speaker 2>and some of the justice's concerns that the text of

0:24:28.760 --> 0:24:35.440
<v Speaker 2>the statute doesn't mention the word tariffs at all exactly.

0:24:35.640 --> 0:24:39.480
<v Speaker 8>The argument focused quite heavily on this law used by

0:24:39.560 --> 0:24:43.399
<v Speaker 8>President Trump AEPA and whether that law, which gives the

0:24:43.440 --> 0:24:48.119
<v Speaker 8>president the power to regulate imports, also includes the power

0:24:48.160 --> 0:24:51.760
<v Speaker 8>to impose tariffs. That really dominated most of the hearing,

0:24:52.320 --> 0:24:56.480
<v Speaker 8>and the justices asked very difficult questions on both sides.

0:24:56.720 --> 0:25:00.639
<v Speaker 8>The administration said and the Solicitor General and the argument

0:25:00.720 --> 0:25:04.359
<v Speaker 8>said that the ability to impose tariffs is a core

0:25:04.520 --> 0:25:09.520
<v Speaker 8>application of the ability to regulate imports in a historical context,

0:25:09.680 --> 0:25:13.880
<v Speaker 8>said that, of course, the power to regulate imports would

0:25:13.920 --> 0:25:17.280
<v Speaker 8>be read to include tariffs because tariffs have been used

0:25:17.320 --> 0:25:20.800
<v Speaker 8>throughout our country's history. On the other hand, several justices

0:25:20.840 --> 0:25:23.600
<v Speaker 8>were skeptical of that, and the plaintiffs in this case

0:25:24.160 --> 0:25:29.720
<v Speaker 8>said that when the delegation includes tariff authority, there is

0:25:29.800 --> 0:25:34.000
<v Speaker 8>always specific language to that effect, and that there are

0:25:34.000 --> 0:25:38.760
<v Speaker 8>always conditions and tests and agency decisions that have to

0:25:38.800 --> 0:25:41.720
<v Speaker 8>go into that tariff power. So there was a good

0:25:41.760 --> 0:25:44.680
<v Speaker 8>amount of the argument focused on those issues, and again,

0:25:44.760 --> 0:25:48.000
<v Speaker 8>whether the power to regulate imports includes the power to

0:25:48.040 --> 0:25:50.000
<v Speaker 8>impose tariffs, And.

0:25:49.920 --> 0:25:52.560
<v Speaker 2>What did you think of a Solicitor General arguing that

0:25:52.600 --> 0:25:57.159
<v Speaker 2>the Trading with the Enemy Act of nineteen seventeen gives

0:25:57.200 --> 0:26:01.600
<v Speaker 2>the president authority and also to a nineteen seventy six

0:26:01.800 --> 0:26:06.840
<v Speaker 2>tariff by President Richard Nixon that the Supreme Court upheld.

0:26:08.119 --> 0:26:12.200
<v Speaker 8>Well, I think both sides had responses there. So the

0:26:12.320 --> 0:26:15.800
<v Speaker 8>Solicitor General argued, yes, that the Trading with the Enemy

0:26:15.840 --> 0:26:21.160
<v Speaker 8>Act was used to impose tariffs in a prior situation

0:26:21.280 --> 0:26:24.679
<v Speaker 8>by President Nixon, and that there's no reason to think

0:26:25.080 --> 0:26:28.480
<v Speaker 8>that anything had changed when AEPA had passed. On the

0:26:28.480 --> 0:26:31.960
<v Speaker 8>other hand, I think the plaintiffs had a response to

0:26:32.000 --> 0:26:36.840
<v Speaker 8>that in terms of the fact again that when tariffs

0:26:36.840 --> 0:26:40.080
<v Speaker 8>are involved, there are always conditions on their use, there

0:26:40.080 --> 0:26:44.240
<v Speaker 8>are always specific procedures, and also the fact that the

0:26:44.320 --> 0:26:48.600
<v Speaker 8>reality is that no other president in fifty years has

0:26:48.760 --> 0:26:53.520
<v Speaker 8>used AIPA to impose tariffs. So a lot of discussion

0:26:53.560 --> 0:26:57.440
<v Speaker 8>on that, I think, tough questions from many of the justices,

0:26:58.200 --> 0:27:00.960
<v Speaker 8>and that is one of the shoes that's joined and

0:27:01.000 --> 0:27:01.920
<v Speaker 8>will have to be decided.

0:27:02.200 --> 0:27:06.920
<v Speaker 2>What role does the Major Questions doctrine play here? It's

0:27:07.200 --> 0:27:10.840
<v Speaker 2>was mentioned several times, and the Chief Justice seemed to

0:27:10.880 --> 0:27:14.960
<v Speaker 2>think it was important Justice score such at one point

0:27:15.040 --> 0:27:18.400
<v Speaker 2>said to Neil Katyal, I think you're going to need

0:27:18.520 --> 0:27:20.240
<v Speaker 2>the Major Questions doctrine.

0:27:21.040 --> 0:27:24.600
<v Speaker 8>Yes. So the question here is does the Major Questions

0:27:24.640 --> 0:27:28.920
<v Speaker 8>Doctrine require a clear statement in AIPA that it includes

0:27:29.000 --> 0:27:34.359
<v Speaker 8>the power to impose tariffs? And this Court has not

0:27:34.520 --> 0:27:40.080
<v Speaker 8>hesitated to start using that doctrine more broadly, but I

0:27:40.119 --> 0:27:44.560
<v Speaker 8>think you're right that the justices had some concerns about

0:27:44.600 --> 0:27:49.359
<v Speaker 8>pursuing it in this venue. And again the question comes

0:27:49.400 --> 0:27:54.000
<v Speaker 8>to is the power to tariff implied in the power

0:27:54.040 --> 0:27:57.919
<v Speaker 8>to regulate imports or if it's not. Was this a

0:27:58.000 --> 0:28:03.280
<v Speaker 8>question that Congress was required to state clearly that tariffs

0:28:03.320 --> 0:28:07.359
<v Speaker 8>were a part of what was envisioned by the new law.

0:28:08.000 --> 0:28:12.040
<v Speaker 2>Do you think that how the conservative justices used the

0:28:12.160 --> 0:28:16.720
<v Speaker 2>Major Questions doctrine to stop several of Biden's initiatives? Do

0:28:16.800 --> 0:28:20.159
<v Speaker 2>you think that that is something that they'll have to

0:28:20.280 --> 0:28:24.240
<v Speaker 2>explain if they allow Trump's tariffs to go through.

0:28:25.160 --> 0:28:27.640
<v Speaker 8>I think it's an interesting question whether they'll go there,

0:28:27.760 --> 0:28:30.080
<v Speaker 8>or whether they will just focus on the language of

0:28:30.080 --> 0:28:33.120
<v Speaker 8>AIBA and this issue of whether the power to regulate

0:28:33.200 --> 0:28:37.280
<v Speaker 8>imports includes the power of tariff and I think several

0:28:37.760 --> 0:28:40.960
<v Speaker 8>justices went down that road. I don't think just because

0:28:41.360 --> 0:28:44.000
<v Speaker 8>these doctrines have been used in other cases, such as

0:28:44.000 --> 0:28:47.720
<v Speaker 8>the Biden student bound forgiveness case, doesn't necessarily mean that

0:28:47.760 --> 0:28:50.880
<v Speaker 8>they will have to address it in this opinion if

0:28:50.880 --> 0:28:54.200
<v Speaker 8>they have other bases for finding that the tariffs were

0:28:54.680 --> 0:28:57.680
<v Speaker 8>legal or improper in any way.

0:28:57.920 --> 0:29:01.240
<v Speaker 2>What was your take on Justice Core, such as questioning

0:29:01.360 --> 0:29:06.160
<v Speaker 2>of the Solicitor General early in the arguments where he

0:29:06.280 --> 0:29:12.719
<v Speaker 2>expressed concerns about the extent of presidential power that Trump

0:29:12.800 --> 0:29:14.880
<v Speaker 2>is claiming and where it could lead.

0:29:16.240 --> 0:29:19.160
<v Speaker 8>Yes, I thought that was very interesting. Justice cours such

0:29:19.200 --> 0:29:22.600
<v Speaker 8>as you mentioned, ask the hypothetical of if Congress can

0:29:22.640 --> 0:29:27.880
<v Speaker 8>delegate the tariff authority, what would prohibit Congress from delegating everything,

0:29:28.040 --> 0:29:31.600
<v Speaker 8>including the power to declare war, which is clearly given

0:29:31.600 --> 0:29:37.240
<v Speaker 8>in the Constitution to Congress and Justice. Corsich also called

0:29:37.640 --> 0:29:41.200
<v Speaker 8>the government's reading of its tariff power as a one

0:29:41.240 --> 0:29:45.120
<v Speaker 8>way ratchet and an accretion of power to the president,

0:29:45.760 --> 0:29:50.840
<v Speaker 8>and one that Congress could not recover. Without a supermajority

0:29:51.040 --> 0:29:53.800
<v Speaker 8>or a veto proof majority, and so that was a

0:29:53.920 --> 0:29:59.200
<v Speaker 8>very interesting discussion. I'm certainly raising some concerns about the limits,

0:29:59.440 --> 0:30:03.560
<v Speaker 8>if any, on the authority that the government was claiming.

0:30:03.840 --> 0:30:07.400
<v Speaker 2>And where does the non delegation doctrine that Gorsuch was

0:30:07.480 --> 0:30:08.520
<v Speaker 2>talking about fit in.

0:30:09.040 --> 0:30:12.959
<v Speaker 8>Well, again, Congress, under the non delegation doctrine, Congress cannot

0:30:13.000 --> 0:30:19.080
<v Speaker 8>transfer to another branch hours that are strictly and exclusively legislative.

0:30:19.680 --> 0:30:24.920
<v Speaker 8>But it may confer substantial discretion on executive agencies to

0:30:25.160 --> 0:30:29.480
<v Speaker 8>implement and enforce the laws. So that's the doctrine in general,

0:30:30.200 --> 0:30:33.840
<v Speaker 8>and the courts have interpreted that to say that a

0:30:33.920 --> 0:30:39.680
<v Speaker 8>delegation of this discretion is constitutional as long as Congress

0:30:39.760 --> 0:30:45.520
<v Speaker 8>lays down an intelligible principle to which the person or

0:30:45.560 --> 0:30:50.000
<v Speaker 8>the agency is directed to conform. And that intelligible principle

0:30:50.040 --> 0:30:53.800
<v Speaker 8>standard is a fairly low bar to clear. It's only

0:30:53.880 --> 0:30:58.120
<v Speaker 8>been found lacking in a couple of statutes. So I

0:30:58.200 --> 0:31:01.640
<v Speaker 8>don't think non delegation plays as much of a role

0:31:02.200 --> 0:31:05.320
<v Speaker 8>as the major questions doctrine, at least from how the argument,

0:31:05.440 --> 0:31:06.760
<v Speaker 8>the oral argument played out.

0:31:07.160 --> 0:31:09.360
<v Speaker 2>You know, it just seemed to me as if the

0:31:09.400 --> 0:31:13.600
<v Speaker 2>Trump administration is having to bend over backwards and torture

0:31:14.000 --> 0:31:17.719
<v Speaker 2>the language to try to get to the result that

0:31:17.760 --> 0:31:22.160
<v Speaker 2>they want, whereas a plane reading wouldn't include tariffs.

0:31:22.760 --> 0:31:25.040
<v Speaker 8>Well, I think that really is the key issue. Again,

0:31:25.120 --> 0:31:28.640
<v Speaker 8>the Solicitor General said, of course it would be understood,

0:31:28.720 --> 0:31:34.720
<v Speaker 8>and implied that the power to regulate imports includes the

0:31:34.760 --> 0:31:41.720
<v Speaker 8>power to impose tariffs, and in fact, adjusting imports is

0:31:42.040 --> 0:31:45.600
<v Speaker 8>another definition of regulating, and also the fact that since

0:31:45.640 --> 0:31:50.080
<v Speaker 8>the founding, historically tariffs have been a primary way to

0:31:50.160 --> 0:31:54.520
<v Speaker 8>regulate imports. So the Solicitor General was arguing it was

0:31:54.520 --> 0:31:58.240
<v Speaker 8>a natural reading of the law, But the justices were

0:31:58.520 --> 0:32:02.440
<v Speaker 8>skeptical and asked tough questions and noted that in every

0:32:02.440 --> 0:32:05.560
<v Speaker 8>other law where tariffs are involved, the power is made

0:32:05.640 --> 0:32:08.000
<v Speaker 8>very explicitly clear and it comes with conditions.

0:32:08.640 --> 0:32:10.760
<v Speaker 2>Where do you think the justices are going to come

0:32:10.800 --> 0:32:11.680
<v Speaker 2>out here.

0:32:12.800 --> 0:32:16.080
<v Speaker 8>Well, I'm not in the business of making predictions. Generally,

0:32:16.520 --> 0:32:19.000
<v Speaker 8>I think my own personal view is that the court's

0:32:19.000 --> 0:32:22.800
<v Speaker 8>three Democratic justices probably vote against these tariffs. And then

0:32:22.840 --> 0:32:25.600
<v Speaker 8>the question is whether some of the majority of the

0:32:25.600 --> 0:32:29.480
<v Speaker 8>court have similar concerns about the president's use of this law.

0:32:30.120 --> 0:32:33.800
<v Speaker 8>And I do think that it's still a very close decision.

0:32:34.040 --> 0:32:37.720
<v Speaker 8>It could go either way based on the questioning. My

0:32:37.800 --> 0:32:41.520
<v Speaker 8>own view, I thought Chief Justice Roberts and Justice Barrett

0:32:41.680 --> 0:32:46.280
<v Speaker 8>and Justice Gorsich were perhaps more skeptical of the president's

0:32:46.280 --> 0:32:51.200
<v Speaker 8>tariff authority under a than the other justices. But again,

0:32:51.280 --> 0:32:53.719
<v Speaker 8>that was just the oral argument. We don't really know

0:32:53.760 --> 0:32:56.000
<v Speaker 8>how it will come out. I guess the only other

0:32:56.040 --> 0:33:00.120
<v Speaker 8>point I would make is, although it was discussed the

0:33:00.240 --> 0:33:03.440
<v Speaker 8>oral argument, I have a hard time seeing this court

0:33:03.520 --> 0:33:07.240
<v Speaker 8>making a split decision that some of President Trump's tariffs

0:33:07.240 --> 0:33:10.200
<v Speaker 8>are acceptable but others are not. I mean, I suspect

0:33:10.200 --> 0:33:12.280
<v Speaker 8>the courts would prefer not to be in the business

0:33:12.280 --> 0:33:15.120
<v Speaker 8>of making those judgment calls going forward. So I could

0:33:15.160 --> 0:33:19.040
<v Speaker 8>be wrong, but I think the Court will either decide yes,

0:33:19.240 --> 0:33:22.120
<v Speaker 8>the power to regulate imports includes the power to tariff,

0:33:22.600 --> 0:33:24.560
<v Speaker 8>or no it does not, rather than some sort of

0:33:24.600 --> 0:33:28.800
<v Speaker 8>split decision on the fentanyl tariffs versus the reciprocal tariffs.

0:33:29.040 --> 0:33:33.320
<v Speaker 2>So if the court rules against Trump, what happens next,

0:33:33.360 --> 0:33:35.360
<v Speaker 2>I mean, what happens to his tariffs?

0:33:35.760 --> 0:33:38.280
<v Speaker 8>Well, two things would happen. First of all, there would

0:33:38.320 --> 0:33:41.840
<v Speaker 8>likely be some sort of a refund process for importers

0:33:41.880 --> 0:33:44.600
<v Speaker 8>that paid the tariffs during this time, and there is

0:33:44.640 --> 0:33:47.720
<v Speaker 8>some precedent for that before that was discussed during the

0:33:47.840 --> 0:33:50.960
<v Speaker 8>oral argument a situation where the court struck down a

0:33:51.040 --> 0:33:54.760
<v Speaker 8>harbor maintenance tax and there was basically a process where

0:33:55.080 --> 0:33:58.320
<v Speaker 8>companies could file claims for the amount of the tax

0:33:58.360 --> 0:34:02.000
<v Speaker 8>that they paid. So Barretts was concerned that this could

0:34:02.000 --> 0:34:04.520
<v Speaker 8>be a mess and could be very unwieldy, and so

0:34:04.560 --> 0:34:06.840
<v Speaker 8>there were some questions on that point. I guess the

0:34:07.400 --> 0:34:10.360
<v Speaker 8>more important point is what will the president do going forward?

0:34:10.800 --> 0:34:13.920
<v Speaker 8>And I think it's clear that tariffs are still a

0:34:14.000 --> 0:34:18.640
<v Speaker 8>cornerstone of this administration's economic policy, and if the Court

0:34:18.760 --> 0:34:23.960
<v Speaker 8>says that the President cannot use AIPA, the president will

0:34:24.040 --> 0:34:28.040
<v Speaker 8>likely pivot to one of several other trade tools that

0:34:28.160 --> 0:34:32.280
<v Speaker 8>are available, and the Court mentioned many of these, including

0:34:32.360 --> 0:34:35.640
<v Speaker 8>Section one twenty two, the section two thirty two, the

0:34:35.719 --> 0:34:39.439
<v Speaker 8>National Security Law, which the administration has already made quite

0:34:39.480 --> 0:34:42.799
<v Speaker 8>a bit of use of in this administration, Section three

0:34:42.920 --> 0:34:46.080
<v Speaker 8>zero one, and so forth. The limit on those laws

0:34:46.160 --> 0:34:50.600
<v Speaker 8>is that they do require studies or actions by other agencies.

0:34:50.680 --> 0:34:53.560
<v Speaker 8>So Section two thirty two requires a study and a

0:34:53.600 --> 0:34:57.719
<v Speaker 8>report by the Commerce Department and consultation with Defense Department.

0:34:58.120 --> 0:35:02.600
<v Speaker 8>In order to decide that imports of a certain product

0:35:02.880 --> 0:35:09.440
<v Speaker 8>like semiconductors or pharmaceuticals are a threat to national security. Similarly,

0:35:09.800 --> 0:35:13.120
<v Speaker 8>Section three ZHO one, which was the law used to

0:35:13.200 --> 0:35:17.839
<v Speaker 8>impose tariffs on China during the first Trump administration, also

0:35:18.000 --> 0:35:22.520
<v Speaker 8>requires a detailed study by the US Trade representative with

0:35:22.640 --> 0:35:26.440
<v Speaker 8>public inputs. So those tools, for the most part, cannot

0:35:26.480 --> 0:35:30.239
<v Speaker 8>be used as quickly as AEPA was used by President.

0:35:29.920 --> 0:35:32.840
<v Speaker 2>Trump or anything that was striking to you in the

0:35:33.080 --> 0:35:34.560
<v Speaker 2>oral arguments.

0:35:34.880 --> 0:35:38.200
<v Speaker 8>I thought it was interesting when Chief Justice Roberts said

0:35:38.560 --> 0:35:41.799
<v Speaker 8>that it seemed to him that using this law to

0:35:41.920 --> 0:35:46.200
<v Speaker 8>have the president's foreign affairs power trump the legislative power

0:35:46.239 --> 0:35:50.799
<v Speaker 8>to regulate trade seems to neutralize Congress's power. So I

0:35:50.800 --> 0:35:54.319
<v Speaker 8>thought that was notable. Justice Barrett asked whether there was

0:35:54.360 --> 0:35:57.280
<v Speaker 8>any other time in history with a phrase regulate imports

0:35:57.400 --> 0:36:01.279
<v Speaker 8>was read to include the imposition of tear riffs, and

0:36:01.760 --> 0:36:04.719
<v Speaker 8>she seemed not entirely convinced by the response from the

0:36:04.760 --> 0:36:09.960
<v Speaker 8>Solicitor General, and then Justice Kavanaugh asked, you know, the

0:36:10.120 --> 0:36:13.720
<v Speaker 8>historical perspective was the tariff power the kind of power

0:36:14.200 --> 0:36:19.000
<v Speaker 8>understood by Congress to exist when the AEPA law was passed,

0:36:19.520 --> 0:36:22.879
<v Speaker 8>and he also did ask why in prior economic emergencies

0:36:22.920 --> 0:36:26.000
<v Speaker 8>have other presidents not used IP but to invoke tariffs.

0:36:26.080 --> 0:36:31.040
<v Speaker 8>So again, very tough questions on all sides, and still

0:36:31.160 --> 0:36:34.120
<v Speaker 8>a very close case as to how this will ultimately

0:36:34.120 --> 0:36:34.440
<v Speaker 8>come out.

0:36:34.840 --> 0:36:38.320
<v Speaker 2>Thanks so much for joining me, Jim. That's Timothy Brightbill

0:36:38.480 --> 0:36:41.840
<v Speaker 2>of Wilie Rhine, and that's it for this edition of

0:36:41.840 --> 0:36:44.520
<v Speaker 2>The Bloomberg Law Show. Remember you can always get the

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<v Speaker 2>tune into The Bloomberg Law Show every weeknight at ten

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