WEBVTT - Trump Loses on Tariffs & Sending Troops Into Los Angeles

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

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<v Speaker 2>If I didn't send the National Guard into Los Angeles,

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<v Speaker 2>you wouldn't I would be making an announcement today, I'd

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<v Speaker 2>be talking about Huntsville, and I'd simultaneously be saying, by

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<v Speaker 2>the way, the Olympics is not coming to Los Angeles.

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<v Speaker 3>But a federal judge has found there was no rebellion,

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<v Speaker 3>nor was civilian law enforcement unable to respond to the

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<v Speaker 3>protests and enforce the law in Los Angeles. This summer,

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<v Speaker 3>Judge Stephen Bryer ruled that the Trump administration wilfully violated

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<v Speaker 3>federal law by deploying National Guard troops and US Marines

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<v Speaker 3>to carry out local law enforcement in Los Angeles. In

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<v Speaker 3>a scathing ruling, Briar noted that Trump has stated his

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<v Speaker 3>intention to deploy National Guard troops to other cities across

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<v Speaker 3>the country, raising concerns that Trump is creating a national

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<v Speaker 3>police force with the president as its chief. And today

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<v Speaker 3>in the Oval Office, Trump confirmed that Chicago is next

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<v Speaker 3>that he'll direct federal law enforcement intervention to combat crime

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<v Speaker 3>in Chicago, despite staunch opposition from state and local officials.

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<v Speaker 2>If the governor Illinois would call up, call me up.

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<v Speaker 2>I would love to do it. Now we're going to

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<v Speaker 2>do it anyway. We have the right to do it

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<v Speaker 2>because I have an obligation to protect this country and

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<v Speaker 2>that includes Baltimore. I saw where Governor Moore was asking

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<v Speaker 2>me to take a walk down the street of Baltimore. Well,

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<v Speaker 2>Baltimore is a very unsafe place.

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<v Speaker 3>Illinois Governor JB. Pritzker reiterated today that crime is down

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<v Speaker 3>in Chicago and that the city doesn't need, nor does

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<v Speaker 3>it want, federal troops there.

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<v Speaker 4>None of this is about fighting crime or making Chicago safer.

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<v Speaker 4>None of it. For Trump, it's about testing his power

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<v Speaker 4>and producing a political drama to cover up for his corruption.

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<v Speaker 4>If you need any proof of this that it's all

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<v Speaker 4>a big show.

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<v Speaker 3>My guest is constitutional law expert Harold Krant, a professor

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<v Speaker 3>at the Chicago Kent College of Law. Hal is judge

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<v Speaker 3>Briar's decision a complete refutation of Trump sending troops into

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<v Speaker 3>Los Angeles.

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<v Speaker 5>It's a partial reputation, and indeed, just Buyer's order allows

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<v Speaker 5>the military to remain. What he has done is delineate

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<v Speaker 5>what they can and cannot do. And so this is

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<v Speaker 5>an effort by the judge this steer clear of the

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<v Speaker 5>earlier Ninth Circuit decision which lifted a day on his

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<v Speaker 5>earlier preliminary injunction. So the court here is trying to

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<v Speaker 5>be careful in trying to say what the National Guard

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<v Speaker 5>can do and can't do. And it's up to the

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<v Speaker 5>Ninth Circuit to react, and I'm sure they'll react one

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<v Speaker 5>way or the other.

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<v Speaker 3>But how didn't he find that sending the National Guard

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<v Speaker 3>in was a violation of the Passikamatatis Act.

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<v Speaker 5>He did, but he said that there were some duties

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<v Speaker 5>that the federalized National Guard could in fact undertake consistent

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<v Speaker 5>with the pass Coomatatas Act, but that the fact was

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<v Speaker 5>that he made a factual finding that the troops had

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<v Speaker 5>done more than that they had engaged in general law

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<v Speaker 5>enforcement activity, which she said was proscribed under the Pussikamatatis

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<v Speaker 5>Act and tradition. So he made it more narrow nuanced

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<v Speaker 5>finding that they had previously saying he didn't even question

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<v Speaker 5>the ability of the President to federalize the National Guard

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<v Speaker 5>against the governor's wishes, which obviously took place earlier in

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<v Speaker 5>the year. But he said, even if the president can

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<v Speaker 5>do that, they can't engage in general law enforcement activities,

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<v Speaker 5>including covering ice agents, including dispersing crowd and so forth.

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<v Speaker 6>So it's a.

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<v Speaker 5>More narrow decision than he issued previously, and we'll see

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<v Speaker 5>how the Ninth Circuit again reacts to it.

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<v Speaker 3>So he said, there were indeed protests in Los Angeles

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<v Speaker 3>and some individuals engaged in violence, yet there was no rebellion,

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<v Speaker 3>nor was civilian law enforcement unable to respond to the

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<v Speaker 3>protests and enforce the law.

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<v Speaker 6>There was really two sides. The earlier had ruled that.

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<v Speaker 5>The President lacked authority to federalize the National Guard because

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<v Speaker 5>of the reasons you suggested, And so he is trying

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<v Speaker 5>to create a decision, in my mind here that is

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<v Speaker 5>consistent with the broad principles he articulated, previously limiting the

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<v Speaker 5>president's abilities to nationalize the Federal Guard, but then, realizing

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<v Speaker 5>that the Ninth Circuit had overruled him in part previously,

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<v Speaker 5>then decided to add more granually that even if the

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<v Speaker 5>President could nationalize the National Guard, that they could not

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<v Speaker 5>engage in sort of typical law enforcement authority, which he said,

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<v Speaker 5>including you know, dispersing crowds, including protecting ice agents and

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<v Speaker 5>so forth. But I think the consensus has been that

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<v Speaker 5>the president cannot nationalize the National Guard. You know, unless

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<v Speaker 5>all typical law enforcement has collapsed, you can't enforce court

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<v Speaker 5>orders or there's an insurrection, and obviously those two things

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<v Speaker 5>are not in place in Los Angeles. In my mind, though,

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<v Speaker 5>this is a sideshow because President Trump continually says that

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<v Speaker 5>he can federalize the National Guard and send them wherever

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<v Speaker 5>he wants, to include Chicago, just for ordinary criminal law enforcements.

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<v Speaker 5>So it's clear that there's a clash between the Court's

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<v Speaker 5>view of the limits of the president's authority under the

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<v Speaker 5>Pasi Comatatus Act and what the President thinks he can

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<v Speaker 5>do and has continually espoused he can do in terms

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<v Speaker 5>of federalizing the troops at a moment's notice.

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<v Speaker 3>The judge cited us he span broadcast of Trump's August

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<v Speaker 3>twenty seventh Cabinet meeting where he discussed sending the National

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<v Speaker 3>Guard into Chicago and said, quote, I have the right

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<v Speaker 3>to do anything I want to do.

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<v Speaker 1>So Judge Briar cited.

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<v Speaker 3>That, and then he expanded his order beyond Los Angeles

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<v Speaker 3>to all of California.

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<v Speaker 5>You're currently limited the order to California, but decided that

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<v Speaker 5>because California itself was a plaintiff, he was empowered to

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<v Speaker 5>extend the relief to grant protection to the plaintiff in

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<v Speaker 5>the case.

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<v Speaker 1>Do you think that went too far?

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<v Speaker 5>Well, My only concern about the Court's opinion is that

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<v Speaker 5>the Court seemed to be dismissing the present's sort of

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<v Speaker 5>inherent authority as a statutory matter. I think the Court

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<v Speaker 5>is on strong ground, both historically and in terms of

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<v Speaker 5>textually of understanding the limits of the passe comatatus Act.

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<v Speaker 5>I think the Court was a little bit quick in

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<v Speaker 5>terms of dismissing the presence sort of inherent authority under

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<v Speaker 5>the Commander and Chief clause of the Constitution. Clearly, presidents

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<v Speaker 5>have to make tough costs, tough calls in terms of

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<v Speaker 5>lias on street, tough cause in terms of potential invasions

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<v Speaker 5>and so forth, and so if the president is said,

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<v Speaker 5>we need to protect federal buildings, we need to protect

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<v Speaker 5>federal instrumentalities, I think that article to itself might give

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<v Speaker 5>the president arguably does give it the president that kind

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<v Speaker 5>of authority to order troops to protect those even if

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<v Speaker 5>states say they don't need it. So that's not at

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<v Speaker 5>stake here, and President Trump's news conference clearly illustrates that

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<v Speaker 5>that's not at stake here. But I think that might

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<v Speaker 5>be a weakness in the Court's opinion, because I do

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<v Speaker 5>think that the chief executive has to make those tough

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<v Speaker 5>calls if there are threats in the president's mind to

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<v Speaker 5>federal instrumentalities within the States.

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<v Speaker 3>What Trump has said today is there are lots of

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<v Speaker 3>murderers in Chicago, and crime is up in Chicago, and

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<v Speaker 3>they're going in.

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<v Speaker 1>But he didn't say when.

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<v Speaker 5>But there's absolutely no justification for what the President say

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<v Speaker 5>he's going to do in Chicago, which is even more

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<v Speaker 5>indefensible than what he did in California. And I would

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<v Speaker 5>expect that the mayor of Chicago, Mayor Johnson, and the

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<v Speaker 5>governor of Illinois, Governor Pritsko, will immediately go to court

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<v Speaker 5>not only cite the most recent Judge Briar decision, but

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<v Speaker 5>cite just more convincingly that the President has acknowledged the

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<v Speaker 5>purpose for why he's sending in troops into Chicago, and

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<v Speaker 5>that's absolutely prohibited by the pussy com pat effect under

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<v Speaker 5>any construction of the terms of the statute.

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<v Speaker 3>So Judge Briar's decision has no effect in Illinois correct,

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<v Speaker 3>But is the reasoning strong enough to apply to Illinois.

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<v Speaker 5>I think that reasoning will over the same situation, and again,

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<v Speaker 5>Chicago is an easier case. And I think that to

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<v Speaker 5>the extent that the President would say that ICE agents

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<v Speaker 5>are under attack and that Key as Caman achieved, can't

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<v Speaker 5>ensure an orderly function of immigration processes in this country

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<v Speaker 5>without calling in supportive troops. That would be the strongest

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<v Speaker 5>sort of justification that I can understand in the California context,

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<v Speaker 5>for the use of either the federalized National Guard or

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<v Speaker 5>for the Marines. But he clearly in Chicago's basically is

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<v Speaker 5>that I don't even need that justification. I can send

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<v Speaker 5>troops wherever I want, whenever I want, because I'm the

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<v Speaker 5>President of the United States. And that downright is frightening.

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<v Speaker 5>Not only is it clearly outlawed by the pussy Coomatata

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<v Speaker 5>fact and by the history that led to the Act,

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<v Speaker 5>but it's a huge step towards autocracy.

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<v Speaker 3>What if he just instead of sending in the National

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<v Speaker 3>Guard or military troops, if you just sent in lots

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<v Speaker 3>and lots of federal agbi dea ice, Is there any

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<v Speaker 3>a problem with that?

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<v Speaker 1>Legally?

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<v Speaker 5>There may be pockets of restrictions, but I think ordinarily

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<v Speaker 5>that would be within his power, and certainly he can

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<v Speaker 5>shift FBI agents over to EIST as temporary details. He

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<v Speaker 5>has the power to do that under prior statute. So

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<v Speaker 5>in that respect he could accomplish at least some of

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<v Speaker 5>his goals. But again, he could not engage those FBI

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<v Speaker 5>agents in terms of taking over for general law enforcement

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<v Speaker 5>for Chicago, because the FBI is not authorized. The EE

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<v Speaker 5>agents aren't authorized to deal with conventional robbery, theft, et cetera.

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<v Speaker 5>That are state crimes, not federal crimes.

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<v Speaker 3>So the Insurrection Act is an exception to the posse

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<v Speaker 3>comma tatis law.

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<v Speaker 5>That's correct. And so if he would deem that we

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<v Speaker 5>are under insurrection, I don't even know what the theory

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<v Speaker 5>would be in Chicago. But if he says that there

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<v Speaker 5>is an insurrection because undocumented worker are rising up in

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<v Speaker 5>arms against the authority, or he would say that some

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<v Speaker 5>other kind of indirection is taking place, then he could

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<v Speaker 5>justifiably use federal troops. He has not made that claim,

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<v Speaker 5>and indeed one is very far fetched given the facts

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<v Speaker 5>as we know them.

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<v Speaker 3>Now, and particularly in light of the fact that he

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<v Speaker 3>did not declare an insurrection on January sixth of twenty

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<v Speaker 3>twenty one. Coming up next on the Bloomberg Lawn Show,

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<v Speaker 3>I'll continue this conversation with Professor Harold Krant of the

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<v Speaker 3>Chicago Kent College of Law. So what can Illinois governor

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<v Speaker 3>and Chicago's mayor do? I'm June Gross. When you're listening

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<v Speaker 3>to Bloomberg. President Donald Trump said today that he'll direct

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<v Speaker 3>federal law enforcement intervention to combat crime in Chicago, despite

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<v Speaker 3>staunch opposition from Chicago's mayor and Illinois governor.

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<v Speaker 5>Well, we're going in.

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<v Speaker 2>I didn't say when we're going in.

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<v Speaker 4>We know before anything has happened here that the Trump

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<v Speaker 4>plan is to use any excuse to deploy armed military

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<v Speaker 4>personnel to Chicago. If someone flings a sandwich at an

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<v Speaker 4>Ice agent, Trump will try and go on TV and

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<v Speaker 4>declare an emergency in Chicago.

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<v Speaker 3>I've been talking to Professor Harold Krent of the Chicago

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<v Speaker 3>Kent College of Law. So how before the break, we

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<v Speaker 3>were talking about Judge Briar's decision that the Trump administration

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<v Speaker 3>willfully broke federal law when they sent National Guard troops

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<v Speaker 3>to Los Angeles, and we were talking about the Insurrection

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<v Speaker 3>Act and that that's an exception to the Posse Comitatis

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<v Speaker 3>Act that Judge Briar said the president could have invoked.

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<v Speaker 3>Judge said, if the president wants to avoid the act's restrictions,

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<v Speaker 3>he must invoke a valid exception like the Insurrection Act,

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<v Speaker 3>along with its requisite showing that state and local law

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<v Speaker 3>enforcement are unable or unwilling to act.

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<v Speaker 5>But when we had riots in the wake of the

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<v Speaker 5>sesssination of Martin Luther King, whom he had the unrest

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<v Speaker 5>because of the George Floyd murder, arguably local law enforcement

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<v Speaker 5>could not take the helm and preserve law and order.

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<v Speaker 5>And that is an exception of the Putico Tatus Act.

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<v Speaker 5>And indeed, the courts would be in difficult position if

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<v Speaker 5>the president made a careful finding that that is why

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<v Speaker 5>he is sending troops, that there is no local law

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<v Speaker 5>enforcement that can take care of law enforcement activities. He's

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<v Speaker 5>never made that finding, and given the fact that the

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<v Speaker 5>clim has gone down into these like Washington, d C

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<v Speaker 5>in Chicago, it's simply far fetched, which is understandably why

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<v Speaker 5>he doesn't want to make that kind of specific finding. So, yes,

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<v Speaker 5>presidents have sent in troops, and President Trump could in

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<v Speaker 5>the future respecting Congress, but not in these situations. Obviously,

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<v Speaker 5>the Constitution ascribes a principal role to Congress and deciding

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<v Speaker 5>when to introduce the military into civil in situations. Congress

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<v Speaker 5>has done so in the Passacacomma Titus Act as well

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<v Speaker 5>as the limitations in the Insurrection Act. And that's the

0:14:07.160 --> 0:14:11.520
<v Speaker 5>role that the Constitution gives to Congress, and pusident Trump

0:14:11.760 --> 0:14:14.360
<v Speaker 5>is just writing luckshot over the constitutional structure.

0:14:14.760 --> 0:14:19.080
<v Speaker 3>The mayor of Chicago and the governor and other officials

0:14:19.160 --> 0:14:23.160
<v Speaker 3>held this press conference, and is there anything that the

0:14:23.320 --> 0:14:27.080
<v Speaker 3>governor or the mayor can do to stop him from

0:14:27.200 --> 0:14:30.560
<v Speaker 3>federalizing the National Guard? I mean, the National Guard is

0:14:30.600 --> 0:14:34.600
<v Speaker 3>supposedly under the governor's control, right, absolutely.

0:14:34.240 --> 0:14:37.520
<v Speaker 5>But there are circumstances where the president can federalize the

0:14:37.600 --> 0:14:41.960
<v Speaker 5>National Guard. And at this point they may preemptibly go

0:14:42.040 --> 0:14:44.600
<v Speaker 5>to court. I'm sure they're discussing it both in terms

0:14:44.720 --> 0:14:48.160
<v Speaker 5>of filing lawsuit before the President sends troops or they'll

0:14:48.200 --> 0:14:50.560
<v Speaker 5>wait them out and at the first sign of when

0:14:50.600 --> 0:14:53.600
<v Speaker 5>the President does introduce troops into the streets of Chicago,

0:14:54.040 --> 0:14:55.840
<v Speaker 5>then they'll run into the federal.

0:14:55.600 --> 0:14:59.040
<v Speaker 6>Court and hope for the best. I think they will.

0:14:58.960 --> 0:15:03.240
<v Speaker 5>Receive a favorable reception in the Seventh Circuit in this area.

0:15:03.360 --> 0:15:04.360
<v Speaker 5>But time will tell.

0:15:04.880 --> 0:15:07.560
<v Speaker 3>Suppose they started using the National Guard for other things

0:15:07.640 --> 0:15:11.320
<v Speaker 3>in Chicago or in Illinois, cleaning up the streets of

0:15:11.400 --> 0:15:13.840
<v Speaker 3>every town or something like that. Suppose they just use

0:15:13.920 --> 0:15:15.160
<v Speaker 3>the National Guard themselves.

0:15:15.600 --> 0:15:17.440
<v Speaker 5>Yeah, I mean, the governor can do that, and the

0:15:17.480 --> 0:15:19.480
<v Speaker 5>governors in the past, have you used the National Guard

0:15:19.560 --> 0:15:22.480
<v Speaker 5>to help enhance the safety of their communities, But absent

0:15:22.600 --> 0:15:26.160
<v Speaker 5>the governor's directions, that president lacks the authority to do

0:15:26.280 --> 0:15:29.520
<v Speaker 5>so except for these delineated exceptions that Congress has carefully

0:15:29.600 --> 0:15:31.760
<v Speaker 5>fought through, And it would be up to the courts

0:15:31.800 --> 0:15:35.400
<v Speaker 5>then to respect that dividing line between Congress and the

0:15:35.480 --> 0:15:38.600
<v Speaker 5>President at least. Otherwise we're going to have not a

0:15:38.680 --> 0:15:41.480
<v Speaker 5>separation of powers of three equal branches, but everything will

0:15:41.480 --> 0:15:43.160
<v Speaker 5>be totally dominated by one branch.

0:15:43.240 --> 0:15:46.840
<v Speaker 6>And that's something that the Framers were very cognizant.

0:15:46.360 --> 0:15:49.640
<v Speaker 5>About, the fear of having one branch exceed too much

0:15:49.720 --> 0:15:52.560
<v Speaker 5>power to its own, and that's what we're confronting in

0:15:52.640 --> 0:15:53.280
<v Speaker 5>the near future.

0:15:54.160 --> 0:15:57.040
<v Speaker 3>Tell us what the Ninth Circuit ruled before.

0:15:58.840 --> 0:16:02.120
<v Speaker 5>It's said that it really difficult for courts of second

0:16:02.160 --> 0:16:07.360
<v Speaker 5>guests a justification by the President that there was simply

0:16:07.760 --> 0:16:13.040
<v Speaker 5>not sufficient local law enforcement to protect federal undertakings. In

0:16:13.160 --> 0:16:15.920
<v Speaker 5>this case, the federal undertakers, of course, were the Ice

0:16:15.960 --> 0:16:20.680
<v Speaker 5>agents attempting to round up undocumented individuals and sending them

0:16:20.760 --> 0:16:23.880
<v Speaker 5>out of the country. And so the court decided two.

0:16:23.720 --> 0:16:27.080
<v Speaker 6>To one to not weigh in and say that they

0:16:27.280 --> 0:16:28.560
<v Speaker 6>have a hearing on whether.

0:16:28.480 --> 0:16:32.400
<v Speaker 5>Or not the president's justification was pretext or not. And

0:16:32.520 --> 0:16:35.640
<v Speaker 5>so again the District Court here, Judge Bryer cleverly said,

0:16:36.040 --> 0:16:38.720
<v Speaker 5>even if that's true, that the president has violated the

0:16:38.760 --> 0:16:44.400
<v Speaker 5>comatatis Statute because it has not limited the use of

0:16:44.560 --> 0:16:48.040
<v Speaker 5>the troops for those permissible functions. So they didn't want

0:16:48.080 --> 0:16:50.800
<v Speaker 5>to get into pretext or non pretext, but rather just

0:16:50.920 --> 0:16:54.480
<v Speaker 5>said that what in fact the troops did in Los

0:16:54.520 --> 0:16:58.480
<v Speaker 5>Angeles exceeded their permissible bounds under the statute.

0:16:59.240 --> 0:17:02.040
<v Speaker 3>So, I mean, if the Seventh Circuit follows the Ninth Circuit,

0:17:02.600 --> 0:17:05.000
<v Speaker 3>then they wouldn't stop the troops from coming in.

0:17:05.480 --> 0:17:07.159
<v Speaker 5>I don't think that's going to happen. I mean, I

0:17:07.240 --> 0:17:10.240
<v Speaker 5>think that it obviously depends on what district court judge

0:17:10.520 --> 0:17:14.200
<v Speaker 5>gets the case. Once it's filed, assumably by Governor Pritzker,

0:17:14.480 --> 0:17:18.919
<v Speaker 5>But I think that the logical outcome here is different

0:17:19.359 --> 0:17:22.080
<v Speaker 5>because of the fact that there's no fig leaf. The

0:17:22.160 --> 0:17:25.639
<v Speaker 5>President has not even come close to complying with the

0:17:26.119 --> 0:17:29.800
<v Speaker 5>Postacoma Thomas Act. He's just said local law enforcement time

0:17:29.840 --> 0:17:33.680
<v Speaker 5>and a time at news conferences and not even suggesting

0:17:34.280 --> 0:17:38.160
<v Speaker 5>that there's an insurrection or a failure of the state

0:17:38.200 --> 0:17:41.840
<v Speaker 5>and local government to comply with judicial commands. So I

0:17:41.920 --> 0:17:44.960
<v Speaker 5>think the role is quite clear here in a lawsuit

0:17:45.080 --> 0:17:49.479
<v Speaker 5>is simply issue an injunction to say here outside your

0:17:49.560 --> 0:17:52.520
<v Speaker 5>lane and it would be up then into the Seventh

0:17:52.520 --> 0:17:55.040
<v Speaker 5>Circuit if there is an a junction to determine whether

0:17:55.119 --> 0:17:56.920
<v Speaker 5>to grant it or not, and I think they would

0:17:56.960 --> 0:17:57.320
<v Speaker 5>uphold it.

0:17:57.880 --> 0:18:02.160
<v Speaker 3>And Judge Bryer said something that really resonates in light

0:18:02.240 --> 0:18:05.440
<v Speaker 3>of the fact that President Trump has talked about Chicago

0:18:06.160 --> 0:18:11.080
<v Speaker 3>and next Baltimore and New York. He said, it raises

0:18:11.200 --> 0:18:14.960
<v Speaker 3>concerns that they're creating a national police force with the

0:18:15.119 --> 0:18:18.000
<v Speaker 3>president as its chief. And that's what it seems to

0:18:18.040 --> 0:18:21.199
<v Speaker 3>be because it's about crime, which is usually a local issue.

0:18:21.359 --> 0:18:24.679
<v Speaker 5>Yeah, it's one thing for the president as quasi governor

0:18:24.720 --> 0:18:28.040
<v Speaker 5>for DC to decide what's needed to maintain law and

0:18:28.160 --> 0:18:31.240
<v Speaker 5>order on DC streets. Obviously that's very controversial in his

0:18:31.400 --> 0:18:33.480
<v Speaker 5>own but it's another thing for him to do that

0:18:33.960 --> 0:18:38.280
<v Speaker 5>in states where there are governors trying to displace ubernatorial authority.

0:18:38.640 --> 0:18:40.480
<v Speaker 5>And of course, if you step back and look at this,

0:18:41.040 --> 0:18:44.119
<v Speaker 5>you know the President has said he's doing this in Chicago,

0:18:44.240 --> 0:18:47.000
<v Speaker 5>maybe New York, maybe Baltimore, But you don't hear about

0:18:47.400 --> 0:18:52.200
<v Speaker 5>New Orleans, Memphis, Saint Louis, places with higher crime rates

0:18:52.400 --> 0:18:56.520
<v Speaker 5>that are in Republican states. So again, to think about

0:18:56.920 --> 0:19:00.840
<v Speaker 5>what the president's accomplishing here, he's trying to flexis muscles

0:19:00.840 --> 0:19:03.720
<v Speaker 5>in a way which creates an incredibly dangerous precedent for

0:19:03.840 --> 0:19:04.719
<v Speaker 5>the entire country.

0:19:05.200 --> 0:19:08.280
<v Speaker 3>Well, let's hope it doesn't happen. If it does, there's

0:19:08.280 --> 0:19:10.639
<v Speaker 3>certainly going to be a lot of litigation about it.

0:19:11.080 --> 0:19:13.960
<v Speaker 3>Thanks so much, Hal. That's Professor Harold Krent of the

0:19:14.040 --> 0:19:17.560
<v Speaker 3>Chicago Kent College of Law, coming up next on the

0:19:17.600 --> 0:19:21.159
<v Speaker 3>Bloomberg Law Show. A federal appeals court has ruled that

0:19:21.720 --> 0:19:25.920
<v Speaker 3>President Trump had no legal right to impose sweeping tariffs

0:19:25.960 --> 0:19:29.480
<v Speaker 3>on almost every country. But the next stop is the

0:19:29.560 --> 0:19:34.160
<v Speaker 3>Supreme Court. I'm June Grosso and you're listening to Bloomberg.

0:19:36.040 --> 0:19:39.399
<v Speaker 3>A federal appeals court has ruled that President Donald Trump

0:19:39.520 --> 0:19:43.800
<v Speaker 3>had no legal right to impose sweeping tariffs on almost

0:19:44.000 --> 0:19:47.359
<v Speaker 3>every country. In a seven to four ruling, the US

0:19:47.480 --> 0:19:50.760
<v Speaker 3>Court of Appeals for the Federal Circuit found that Trump

0:19:51.000 --> 0:19:55.399
<v Speaker 3>overstepped his authority under an emergency powers law. It's a

0:19:55.480 --> 0:19:58.920
<v Speaker 3>major legal blow, but it largely upheld a made decision

0:19:59.200 --> 0:20:02.200
<v Speaker 3>by a special federal Trade court in New York.

0:20:03.000 --> 0:20:06.320
<v Speaker 2>But it's a liberal court and it's going up to

0:20:06.400 --> 0:20:10.280
<v Speaker 2>the Supreme Court, who I think have been incredible people.

0:20:10.359 --> 0:20:15.560
<v Speaker 2>I think they've made very wise decisions. But the tariff question,

0:20:16.240 --> 0:20:20.680
<v Speaker 2>because without the tariffs' countries in serious, serious trouble. We've

0:20:20.720 --> 0:20:24.440
<v Speaker 2>taken in. Almost seventeen trillion dollars of investment is coming in.

0:20:25.040 --> 0:20:26.920
<v Speaker 2>Most of it is come in because of tariffs.

0:20:27.240 --> 0:20:31.479
<v Speaker 3>The appeals court didn't strike down the tariffs immediately, allowing

0:20:31.520 --> 0:20:35.760
<v Speaker 3>the administration until mid October to appeal to the Supreme Court,

0:20:36.200 --> 0:20:39.639
<v Speaker 3>although Trump says they'll do so immediately. My guest is

0:20:39.760 --> 0:20:42.840
<v Speaker 3>Jimmy Garul, a professor at Notre Dame Law School and

0:20:42.960 --> 0:20:46.880
<v Speaker 3>the former Undersecretary for Enforcement at the Department of the Treasury.

0:20:47.280 --> 0:20:50.560
<v Speaker 3>Jimmy will you explain why the Federal Circuit Court of

0:20:50.600 --> 0:20:52.960
<v Speaker 3>Appeals ruled against Trump's tariffs.

0:20:53.480 --> 0:20:56.120
<v Speaker 7>Well, first let me meet us back up. So on Friday,

0:20:56.200 --> 0:20:57.960
<v Speaker 7>as you state of, the US Court of Appeals for

0:20:58.040 --> 0:21:01.520
<v Speaker 7>the Federal Circuit affirmed a lower court decision by the

0:21:01.560 --> 0:21:05.520
<v Speaker 7>Court of International Trade. That decision was issued back in May,

0:21:05.920 --> 0:21:09.080
<v Speaker 7>and in that decision, the Court of International Trade set

0:21:09.119 --> 0:21:13.560
<v Speaker 7>aside five executive orders issued by President Trump that imposed

0:21:13.880 --> 0:21:17.879
<v Speaker 7>tariffs of unlimited duration on nearly all goods from merely

0:21:18.040 --> 0:21:22.080
<v Speaker 7>every country across the globe. So that decision was affirmed,

0:21:22.760 --> 0:21:25.160
<v Speaker 7>and the US Court of Appeals for the Federal Circuit

0:21:25.480 --> 0:21:30.159
<v Speaker 7>held that AIPA the International Emergency Economic Powers Act, that

0:21:30.280 --> 0:21:35.119
<v Speaker 7>the authority under that statute to authorize the President to

0:21:35.359 --> 0:21:38.080
<v Speaker 7>regulate and this is an important term in the statute,

0:21:38.359 --> 0:21:43.440
<v Speaker 7>regulate imports. Does not authorize President Trump to impose tariffs

0:21:43.520 --> 0:21:48.360
<v Speaker 7>under either the reciprocal tariffs or the drug trafficking tariffs.

0:21:48.640 --> 0:21:53.600
<v Speaker 7>And so largely it was a statutory construction issue before

0:21:53.680 --> 0:21:57.359
<v Speaker 7>the court. And again the specific issue focused on this

0:21:57.560 --> 0:22:02.200
<v Speaker 7>term regulate and specifically that AIPA authorized as a president

0:22:02.280 --> 0:22:06.760
<v Speaker 7>to regulate imports and whether or not that authority includes

0:22:06.920 --> 0:22:10.359
<v Speaker 7>the authority to impose tariffs, and the Federal Court said, no,

0:22:10.520 --> 0:22:10.920
<v Speaker 7>it does not.

0:22:11.640 --> 0:22:15.399
<v Speaker 3>So they didn't get into, you know, his claims about

0:22:15.400 --> 0:22:17.879
<v Speaker 3>the tariffs that they were to try to settle the

0:22:18.000 --> 0:22:21.959
<v Speaker 3>trade imbalance and the importation of fentenol.

0:22:22.040 --> 0:22:23.480
<v Speaker 1>Do they reach that at all?

0:22:24.040 --> 0:22:27.600
<v Speaker 7>No, there really wasn't. It focused again on this particular language,

0:22:27.640 --> 0:22:30.240
<v Speaker 7>you know, the term regulate and what's the scope of

0:22:30.280 --> 0:22:30.880
<v Speaker 7>the meaning.

0:22:30.680 --> 0:22:31.320
<v Speaker 5>Of that term.

0:22:31.760 --> 0:22:35.440
<v Speaker 7>The court went on, you know, focusing on statutory construction

0:22:36.119 --> 0:22:39.960
<v Speaker 7>and look to other statutes that Congress had enacted that

0:22:40.359 --> 0:22:44.640
<v Speaker 7>authorized the president to impost tariffs and said, well, look,

0:22:44.720 --> 0:22:51.120
<v Speaker 7>with those federal statutes, Congress had imposed requirements on when

0:22:51.200 --> 0:22:56.320
<v Speaker 7>the president could impose tariffs and imposed limitations and said, well,

0:22:56.359 --> 0:22:58.520
<v Speaker 7>that's not the case here. You know that there were

0:22:58.680 --> 0:23:03.200
<v Speaker 7>very very few, you know, limitations on the president's authority

0:23:03.320 --> 0:23:07.360
<v Speaker 7>to impost tariffs under iepis has been leveraged by by

0:23:07.440 --> 0:23:11.320
<v Speaker 7>President Trump. They talked about legislative intent, that there was

0:23:11.400 --> 0:23:15.959
<v Speaker 7>no legislative intent and the statute to authorize the President

0:23:16.040 --> 0:23:18.840
<v Speaker 7>to impose triiffs. They highlighted the fact that the word

0:23:19.040 --> 0:23:23.399
<v Speaker 7>tariffs does not appear anywhere in the statute and therefore,

0:23:23.440 --> 0:23:27.600
<v Speaker 7>from a statutory construction perspective, the Court said, you know, no,

0:23:27.880 --> 0:23:31.720
<v Speaker 7>IPA doesn't provide the president of that authority. Now, having

0:23:31.840 --> 0:23:35.400
<v Speaker 7>said that, there were a couple of additional interesting arguments

0:23:36.080 --> 0:23:39.080
<v Speaker 7>that the Federal Court race. You know, one, they talked

0:23:39.080 --> 0:23:42.720
<v Speaker 7>about something called the major questions doctrine, and they said

0:23:42.800 --> 0:23:46.280
<v Speaker 7>that under the major questions doctrine, the Supreme Court has

0:23:46.400 --> 0:23:50.480
<v Speaker 7>held that if there is an asserted delegation of authority,

0:23:51.200 --> 0:23:55.040
<v Speaker 7>or if the president the executive branch is claiming that

0:23:55.200 --> 0:24:00.679
<v Speaker 7>Congress has transferred certain authority to the executive branch, if

0:24:00.800 --> 0:24:03.840
<v Speaker 7>based upon the history in the breast of that authority

0:24:04.520 --> 0:24:08.800
<v Speaker 7>that it would have vast economic and political significance, and

0:24:08.920 --> 0:24:13.360
<v Speaker 7>that's the term, you know, economic and political significance, then

0:24:13.400 --> 0:24:17.879
<v Speaker 7>there must be clear congressional authorization for the asserted power.

0:24:18.320 --> 0:24:21.879
<v Speaker 7>And here they claimed that there was no such clear

0:24:22.480 --> 0:24:28.920
<v Speaker 7>congressional authorization from Congress to the president to impose tariffs.

0:24:29.320 --> 0:24:32.120
<v Speaker 7>And then lastly, I think that the next major argument

0:24:32.240 --> 0:24:35.639
<v Speaker 7>that the Court raised and reaching its conclusion is they

0:24:36.000 --> 0:24:39.440
<v Speaker 7>argue that the government's argument that the president had this

0:24:39.560 --> 0:24:44.120
<v Speaker 7>authority was delegated to the executive branch by Congress violated

0:24:44.200 --> 0:24:49.680
<v Speaker 7>the non delegation doctrine, that this was an unconstitutional delegation

0:24:50.400 --> 0:24:56.080
<v Speaker 7>of power because Congress did not provide a sufficiently intelligible

0:24:56.200 --> 0:25:01.679
<v Speaker 7>principle that set forth the purpose of why Congress delegated

0:25:01.760 --> 0:25:05.720
<v Speaker 7>this power to impose tariffs to the president. And then

0:25:05.840 --> 0:25:08.840
<v Speaker 7>what were the boundaries, what were the legal boundaries on

0:25:09.000 --> 0:25:13.720
<v Speaker 7>this delegation of authority. So it was these combination of arguments,

0:25:13.760 --> 0:25:18.680
<v Speaker 7>again focusing primarily on the language of the statute that

0:25:19.200 --> 0:25:23.800
<v Speaker 7>the courts relied on in this conclusion striking down the tariffs.

0:25:24.119 --> 0:25:27.520
<v Speaker 3>So what about the descent, the four judges and the descent,

0:25:27.640 --> 0:25:28.560
<v Speaker 3>why didn't they agree?

0:25:29.160 --> 0:25:33.480
<v Speaker 7>Yeah, that's an excellent question, And so it was almost

0:25:33.560 --> 0:25:35.600
<v Speaker 7>kind of a tet for tet arguments, so that the

0:25:35.680 --> 0:25:38.360
<v Speaker 7>Center's arguing, well, you know, we think that the term

0:25:38.480 --> 0:25:43.240
<v Speaker 7>regulate is sufficient, that it does include the authority to

0:25:43.400 --> 0:25:47.480
<v Speaker 7>impose tariffs. And then with respect to the argument regarding

0:25:47.680 --> 0:25:51.440
<v Speaker 7>the major question doctrine and the non delegation doctrine, the

0:25:51.720 --> 0:25:54.680
<v Speaker 7>Descent raised a really interesting argument, and they said, well, yeah,

0:25:54.760 --> 0:25:59.720
<v Speaker 7>but this involves issues implicating national security and foreign policy,

0:26:00.280 --> 0:26:04.200
<v Speaker 7>and we think that the major questioned doctrine doesn't apply

0:26:04.960 --> 0:26:07.800
<v Speaker 7>in the context of the exercise of power by the

0:26:07.880 --> 0:26:12.080
<v Speaker 7>president to protect national security, defend national security, or in

0:26:12.119 --> 0:26:14.480
<v Speaker 7>the field of foreign affairs, and if it does, it

0:26:14.520 --> 0:26:17.320
<v Speaker 7>should be liberally applied, not in a narrow way, but

0:26:17.880 --> 0:26:21.359
<v Speaker 7>to afford the president to exercise terrorf authority, and the

0:26:21.440 --> 0:26:24.399
<v Speaker 7>same thing with a non delegation doctrine. That again, the

0:26:24.520 --> 0:26:28.000
<v Speaker 7>court should be very deferential to the president in the

0:26:28.040 --> 0:26:32.160
<v Speaker 7>field of national security and foreign policy. And that could

0:26:32.240 --> 0:26:36.760
<v Speaker 7>very well be an argument that the Supreme Court finds

0:26:36.880 --> 0:26:41.720
<v Speaker 7>persuasive in striking down the Federal Court decision and affirming

0:26:42.240 --> 0:26:42.760
<v Speaker 7>the tariffs.

0:26:43.359 --> 0:26:47.399
<v Speaker 3>The Supreme Court has repeatedly ruled in the president's favor,

0:26:47.840 --> 0:26:51.280
<v Speaker 3>expanding and expanding and expanding presidential power.

0:26:51.880 --> 0:26:54.200
<v Speaker 1>Do you think they're likely to do the same here.

0:26:54.880 --> 0:26:57.480
<v Speaker 7>Well, the US Supreme Court is ruled in favor of

0:26:57.640 --> 0:27:01.399
<v Speaker 7>President Trump and against lower federal court decisions, and at

0:27:01.520 --> 0:27:05.560
<v Speaker 7>least sixteen rulings since April of twenty twenty five, and

0:27:06.000 --> 0:27:09.359
<v Speaker 7>you know, they've lifted injunctions that have been imposed on

0:27:09.640 --> 0:27:13.080
<v Speaker 7>actions taken by the president, again in favor of the

0:27:13.119 --> 0:27:17.679
<v Speaker 7>Trump administration. This is the so called you know, shadow docket.

0:27:18.240 --> 0:27:23.520
<v Speaker 7>And so the Supreme Court, based upon these decisions, they

0:27:23.600 --> 0:27:28.840
<v Speaker 7>seem to be very deferential to the president's exercise of

0:27:29.000 --> 0:27:33.359
<v Speaker 7>executive authority, and they seem to be comfortable and fine

0:27:33.760 --> 0:27:37.840
<v Speaker 7>with an expansion of the president's executive authority based upon

0:27:38.000 --> 0:27:41.639
<v Speaker 7>these previous rulings. And so I think if this pattern continues,

0:27:42.280 --> 0:27:44.720
<v Speaker 7>if we see this pattern continue, then then I think

0:27:44.840 --> 0:27:48.240
<v Speaker 7>it would likely result in a decision that's favorable to

0:27:48.359 --> 0:27:52.960
<v Speaker 7>President Trump and affirming his authority to impose Tariff's under AVA.

0:27:53.400 --> 0:27:58.080
<v Speaker 3>I keep waiting to see what move by Trump will

0:27:58.160 --> 0:28:01.639
<v Speaker 3>be outrageous enough or extend his authority enough that the

0:28:01.720 --> 0:28:05.240
<v Speaker 3>Court is going to finally say, Okay, stop there.

0:28:05.760 --> 0:28:11.240
<v Speaker 7>Yeah, it's hard to identify that benchmark, you know, when

0:28:11.400 --> 0:28:15.680
<v Speaker 7>that red line would be crossed, especially considering the fact

0:28:15.920 --> 0:28:19.640
<v Speaker 7>that the Supreme Court not that long ago, relatively recently

0:28:20.119 --> 0:28:23.639
<v Speaker 7>a role that the president is virtually immune for prosecution.

0:28:24.119 --> 0:28:27.399
<v Speaker 7>But any action taken by the President pursuing who is

0:28:28.119 --> 0:28:31.120
<v Speaker 7>Article two authorities, you know, he's immune and he can't

0:28:31.119 --> 0:28:35.040
<v Speaker 7>be criminally prosecuted, which I'm sure has only in bold

0:28:35.080 --> 0:28:37.719
<v Speaker 7>in the president in terms of really stretching the bounds,

0:28:37.800 --> 0:28:41.040
<v Speaker 7>you know, pressing the boundaries, you know, the extreme boundaries

0:28:41.080 --> 0:28:41.840
<v Speaker 7>of his authority.

0:28:42.080 --> 0:28:44.280
<v Speaker 1>There are other laws that he could use.

0:28:44.760 --> 0:28:48.480
<v Speaker 3>Scott Besant was talking about section three three eight to

0:28:48.520 --> 0:28:52.000
<v Speaker 3>the smooth Holly Terar Effect of nineteen thirty. Then I've

0:28:52.440 --> 0:28:55.960
<v Speaker 3>heard about the Trade Act of nineteen seventy four, So

0:28:56.200 --> 0:28:58.200
<v Speaker 3>I mean, what could he use if he wants to

0:28:58.280 --> 0:29:01.080
<v Speaker 3>stay away from a well.

0:29:01.000 --> 0:29:07.000
<v Speaker 7>That's a secretary Vessent has recently commented on the Federal

0:29:07.480 --> 0:29:12.240
<v Speaker 7>Circuit Court decision and basically making two two points, you know. One,

0:29:12.360 --> 0:29:15.040
<v Speaker 7>he says that he is extremely confident that the Supreme

0:29:15.080 --> 0:29:19.040
<v Speaker 7>Court is going to uphold the Trump tariffs, and that

0:29:19.640 --> 0:29:23.520
<v Speaker 7>even if the Supreme Court rules against the Trump administration

0:29:23.720 --> 0:29:27.560
<v Speaker 7>or limits its authority under AEPA, that there are several

0:29:27.720 --> 0:29:32.240
<v Speaker 7>other statutes enacted by Congress that the president could use

0:29:32.840 --> 0:29:38.080
<v Speaker 7>to continue the tariffs. Now, those statutes are not as

0:29:38.280 --> 0:29:43.280
<v Speaker 7>broad in scope as IEPA. Therefore, there would be certain

0:29:43.400 --> 0:29:47.600
<v Speaker 7>there would be additional prerequisites, you know, conditions and limitations

0:29:48.000 --> 0:29:51.800
<v Speaker 7>placed on the president with respect to imposing tariffs under

0:29:52.480 --> 0:29:56.600
<v Speaker 7>those statutes. But there certainly are other statutes that the

0:29:56.640 --> 0:29:59.719
<v Speaker 7>Trump administration could leverage to continue the tariffs.

0:30:00.760 --> 0:30:04.880
<v Speaker 1>So they picked this because it was fast and easy.

0:30:05.160 --> 0:30:09.520
<v Speaker 7>Yeah, yeah, largely largely so because again the requirements are

0:30:09.600 --> 0:30:12.320
<v Speaker 7>not as demanding as they are in some of these

0:30:12.400 --> 0:30:16.000
<v Speaker 7>other statutes, and the kind of limitations that are imposed

0:30:16.080 --> 0:30:20.600
<v Speaker 7>on those statutes aren't present with the International Emergency Economic

0:30:20.640 --> 0:30:25.400
<v Speaker 7>Powers Act. So I eba cleaner, quicker, easier. Let's take

0:30:25.480 --> 0:30:28.800
<v Speaker 7>the path of least resistance, which is ABA, instead of

0:30:28.920 --> 0:30:31.160
<v Speaker 7>going through these other statutes that are more complicated.

0:30:31.560 --> 0:30:35.600
<v Speaker 3>So the tariffs still on steel, aluminum, and automobiles are

0:30:35.720 --> 0:30:37.240
<v Speaker 3>unaffected by this decision.

0:30:37.680 --> 0:30:41.120
<v Speaker 7>Yes, that's correct, and the reason being is that those

0:30:41.320 --> 0:30:46.160
<v Speaker 7>tariffs were enacted under a different statute. They weren't authorized

0:30:46.240 --> 0:30:46.840
<v Speaker 7>under AEPA.

0:30:47.200 --> 0:30:48.920
<v Speaker 1>I mean, so, how much of a setback is this

0:30:49.080 --> 0:30:49.520
<v Speaker 1>for Trump?

0:30:50.160 --> 0:30:54.520
<v Speaker 7>Well, we'll see. I do think even if let's assume

0:30:54.680 --> 0:30:59.840
<v Speaker 7>that the Supreme Court affirms the Federal Circuit Court decision

0:31:00.640 --> 0:31:04.960
<v Speaker 7>striking down tariffs and RIPA, so then the administration has

0:31:05.080 --> 0:31:09.600
<v Speaker 7>to pursue Plan B. I do think that those other statutes, again,

0:31:10.120 --> 0:31:14.360
<v Speaker 7>they weren't narrow and focused, and they impose greater restrictions

0:31:14.400 --> 0:31:18.960
<v Speaker 7>and limitations. So that is going to I think cumulatively

0:31:19.760 --> 0:31:24.040
<v Speaker 7>limit the scope of the tariffs that are currently in place.

0:31:24.400 --> 0:31:26.080
<v Speaker 7>But at the end of the day, what does that mean?

0:31:26.520 --> 0:31:28.560
<v Speaker 7>You know, the president doesn't get one hundred percent of

0:31:28.600 --> 0:31:31.240
<v Speaker 7>the tariffs that he's imposed. He only gets eighty percent

0:31:31.640 --> 0:31:34.640
<v Speaker 7>or seventy five percent. We'll see, and I think that

0:31:35.280 --> 0:31:38.760
<v Speaker 7>that many of the tariffs will continue, but just based

0:31:38.800 --> 0:31:41.959
<v Speaker 7>on different authority. But I think that maybe the more

0:31:42.000 --> 0:31:46.240
<v Speaker 7>fundamental issue here is the uncertainty this decision by the

0:31:46.360 --> 0:31:51.560
<v Speaker 7>Federal Circuit is creating for investors in the economy. And

0:31:51.680 --> 0:31:54.560
<v Speaker 7>then what are the implications? So if the if the

0:31:54.880 --> 0:31:58.440
<v Speaker 7>AEPA tariffs are struck down, what are the implications of that?

0:31:59.320 --> 0:32:02.040
<v Speaker 7>So does that I mean, the tariffs that have been

0:32:02.120 --> 0:32:08.080
<v Speaker 7>paid under these executive orders have to be repaid, the

0:32:08.200 --> 0:32:11.680
<v Speaker 7>businesses that pay those tariffs have to be compensated. So

0:32:11.800 --> 0:32:15.160
<v Speaker 7>there's a lot of complicated What are the implications of

0:32:15.320 --> 0:32:20.000
<v Speaker 7>this with respect to ongoing negotiations with other countries the

0:32:20.080 --> 0:32:24.840
<v Speaker 7>United States and other countries involving the current tariffs. So

0:32:25.040 --> 0:32:27.680
<v Speaker 7>if the tariffs are struck down on RAIPA, is that

0:32:27.840 --> 0:32:31.760
<v Speaker 7>going to disrupt those negotiations or those negotiations going to

0:32:32.280 --> 0:32:36.280
<v Speaker 7>going to terminate? What's the effect going to be? And

0:32:36.680 --> 0:32:41.360
<v Speaker 7>so the ripple effects of the Supreme Court's decision, whichever

0:32:41.520 --> 0:32:45.040
<v Speaker 7>way it rules, is going to have I think a

0:32:45.200 --> 0:32:48.360
<v Speaker 7>substantial significant impact on the global economy.

0:32:48.680 --> 0:32:49.760
<v Speaker 1>Thanks so much for joining me.

0:32:49.880 --> 0:32:50.160
<v Speaker 5>Jimmy.

0:32:50.480 --> 0:32:53.800
<v Speaker 3>That's Professor Jimmy Garoul of Notre Dame Law School. And

0:32:53.920 --> 0:32:56.040
<v Speaker 3>that's it for this edition of The Bloomberg Law Show.

0:32:56.440 --> 0:32:58.720
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0:33:02.480 --> 0:33:07.360
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0:33:10.600 --> 0:33:14.480
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0:33:14.560 --> 0:33:17.000
<v Speaker 3>June Grosso and you're listening to Bloomberg