Trump's tariffs are blocked, we explain, but also my visit to the Oval Office was very special on a deeply spiritual level. Today is the anniversary of the one year anniversary of President Trump's acquittals in the Trump v. Biden case.
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00:01:49.000Yesterday I was in the White House, which thankfully I've been there a few times since President Trump has won the election.
00:01:57.000But I was able to visit what could be called the most sacred ground of the American government.
00:02:05.000The place where so many decisions have been made, where war has been waged, where the highest decisions of the land I've been there a couple times before, but visiting it yesterday was very moving.
00:02:22.000And that, of course, is the Oval Office.
00:02:25.000Walking into the Oval Office and into the Cabinet Room with President Trump was overwhelming.
00:02:45.000I got to see the original copy of the Declaration of Independence.
00:02:50.000Amazing photos lining the entire oval from William Henry Harrison to James Polk.
00:02:59.000In fact, when President Trump was showing me around, he pointed at James Polk and he says, you know, James Polk is one of the most underrated presidents in history.
00:03:08.000I said, well, tell me why, Mr. President.
00:03:11.000He says, Well, he didn't do much, except he did add California and Texas.
00:03:22.000There is a aura when you walk into the Oval Office, and it was not lost on me how things have changed so dramatically and how we should be filled with gratitude and awe and wonder to Lord Almighty, the mystique that you desire.
00:03:42.000It is one that is sacred ground in our nation.
00:04:32.000I want you to think about where we were a year ago.
00:04:36.000A year ago, Biden was beating President Trump in many of the polls.
00:04:40.000A year ago, our border was completely and totally wide open.
00:04:47.000President Trump was largely gagged by the judge.
00:04:53.000President Donald Trump turned those press gaggles into campaign opportunities, which was incredibly impressive.
00:05:00.000Remember these famous pictures of President Trump who had to sit through this Ridiculous Moscow show trial.
00:05:08.000And the people on the left thought they had him dead to rights.
00:05:13.000They thought the movement would betray him.
00:05:16.000They thought putting him in a courtroom, which was only happening a year ago today, it feels like it's been five years.
00:05:25.000And then tomorrow will be the one-year anniversary of when he's actually, quote-unquote, found guilty on the fake 34 accounts.
00:05:33.000A year ago, the media insisted that Biden was still totally healthy, and it was misleading videos and cheap fakes that were suggesting otherwise.
00:05:45.000Now, Jake Tapper is writing an entire book on how the media got it wrong.
00:05:49.000How did President Trump ascend from facing 700 years in federal prison, having to sit in the icebox where the entire system cracked?
00:06:18.000We should get that picture framed in our office.
00:06:20.000Because very few U.S. senators, I think I see the great Tommy Tuberville there, but very few U.S. senators actually visited President Trump when he was in trial.
00:07:44.000As I walked into the Oval Office yesterday, I was so thankful for all of you that stood by this program and were in the trenches the last couple of years.
00:07:56.000Not just was President Trump on trial a year ago.
00:10:22.000And a year ago, he was in a courtroom, and Biden was chuckling, eating his ice cream, not really sure what was going on.
00:10:31.000And now we have President Trump in the Oval Office.
00:10:33.000Full steam ahead, and now the Democrats are in the wilderness.
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00:13:16.000There was almost certainly a meeting that Joe Biden wasn't there, but amongst the kind of lawfare architects, the Elias types, the Valerie Jarrett types, the smart Democrats, the masters of the universe, because you don't get four simultaneous indictments within 10 months just saying, No, there was a decision.
00:13:37.000There was a signal that was definitely made.
00:13:39.000And I almost guarantee you that somebody that was respected put forward a theory of the case.
00:13:48.000And their theory of the case was this.
00:13:50.000Because remember, President Trump announced for the presidency in November of 2022, right after the midterms.
00:14:39.000He will be the opening shot because he's in New York and there's almost no political consequences.
00:14:44.000We're going to create this thug Jack Smith to go after all the January 6th stuff, simultaneous document stuff.
00:14:51.000We are going to make it seem that he is so unpopular that this will prevent him from winning a Republican primary.
00:14:57.000And that is where their great failure was.
00:15:00.000You see, if they would have let President Trump be alone, I still think President Trump obviously would have won the primary, and I think he would have won it decisively, but he wouldn't have won it as overwhelmingly and non-competitively.
00:15:13.000The indictments almost ended all the momentum, imaginable.
00:15:18.000And then Governor DeSantis, a man who I respect, completely blundered.
00:15:22.000He's like, oh, you know, he's being indicted on stuff, and the base just said no.
00:15:26.000You are trying to go after our leader that they're trying to take out that was wrongfully displaced from power.
00:15:31.000So the Democrats actually were the glue that kept the Republican primary voters together.
00:16:22.000You don't get to use the instruments of justice against a political leader that you don't like.
00:16:30.000And it was just bigger than primary politics.
00:16:34.000The base said that if they can arrest a former president, we must stay together and fight back.
00:16:42.000As President Trump leaned in and fought these indictments, he ascended and he won more men, black and Hispanic men, and low-propensity voters because it was Donald Trump against the machine.
00:16:55.000As soon as that photograph flashed and they took the mugshot, it was largely the end of Biden, Harris, or the Democrats' chances of winning in 2024.
00:17:08.000Gentlemen, let's get real for a second.
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00:18:31.000So, John, a lot of people are confused.
00:18:32.000Explain to us what the court ruling was yesterday, which was preventing President Trump's use of the IEPA, which was the Emergency Powers Act when it comes to tariffs.
00:18:45.000Explain to our audience what happened yesterday.
00:18:48.000In the trade courts, they like to refer to it as IEPA.
00:18:52.000So it is the International Emergency Economic Powers Act.
00:18:56.000It was the legal basis on which President Trump had imposed the fentanyl tariffs, fentanyl trafficking tariffs on China and on Mexico and on Canada, and also the worldwide 10% tariff, the reciprocal tariff on everybody.
00:19:17.000Traditionally, IEPA is actually a statute that's used to impose sanctions.
00:19:21.000The sort of modal version of it is Jimmy Carter is the first person to ever use it.
00:19:28.000He uses it to impose sanctions on Iran after they took Americans hostages at the embassy.
00:19:35.000So it's typically a sort of freeze assets, impose sanctions, not usually, has never actually been used to have very broad tariffs.
00:19:46.000This was a novel legal approach that the Trump administration was doing, saying we can declare an emergency.
00:19:52.000We're allowed to block things altogether under this, so we should be allowed to impose tariffs under it.
00:20:00.000The Court of International Trade, which is a specialized court in Washington, D.C., that hears trade cases.
00:20:09.000And I think it's important that it was the Court of International Trade.
00:20:13.000This isn't some, like, radical left-wing district court judge who did this.
00:20:18.000This is actually a pretty respectable court and respectable panel.
00:20:24.000They said, no, you can't impose tariffs under this act.
00:20:27.000That there is nothing in the act that says you have the power to impose tariffs.
00:20:34.000And they said, if you could impose tariffs under this act, The Constitution says Congress sets tariffs and Congress can't just say to the president, no, we're going to let you do it.
00:20:53.000So this same panel, interestingly enough, also tried to prevent some of Trump's tariffs in the first term.
00:21:13.000So they don't have a perfect record here.
00:21:16.000The Trump administration is obviously going to appeal it, but the decision isn't, you I mean, it has some good, I would say, conservative legal jurisprudence behind it.
00:21:29.000Can Trump simply redo the tariffs using the Trade Expansion Act of 1962?
00:21:38.000He has to do—the thing is, under those acts, under all the other acts where they've imposed 201, 232, you'll hear all these numbers thrown around.
00:21:46.000You usually have to have a little bit more procedure.
00:21:49.000So you have to have, like, Commerce Department or the U.S. Trade Representative do a study, produce a paper, and then you impose the tariffs based on that.
00:22:26.000And ask the Federal Circuit, that's who hears the appeals from the Court of International Trade, they're going to ask the Federal Circuit to, one, stay it, and two, overturn this decision.
00:22:37.000And I don't think we know exactly how that's going to go.
00:22:40.000I think the Trump administration probably will win that case.
00:22:45.000I don't think that the courts are going to revive non-delegation.
00:22:49.000Non-delegation has kind of been a dead law.
00:22:52.000Or, you know, a dead judicial interpretation for 100 years.
00:22:56.000It hasn't been used to overturn any laws.
00:23:01.000I mean, it could be ironic, right, that they revive this conservative approach to constitutional law by limiting a conservative president.
00:23:12.000Sometimes the courts like to do it cutely like that, I guess.
00:23:15.000I have two questions here, the first of which is that partially, not But partially the reason why the southern border was able to be secured so quickly is that Mexico was able to cooperate.
00:23:28.000It's much easier to secure a border from the interior than from the exterior.
00:23:34.000Just definitionally, it's much easier to prevent people from leaving your country than from coming into your country.
00:23:39.000And one of the reasons why Mexico was very quick to help and cooperate is the threat of tariffs against Mexico.
00:23:47.000Does this make those tariffs against Mexico or the threat of them null and void?
00:23:52.000And what implications might that have for border security?
00:23:55.000Well, I think it would, on its face, basically take away the power of the president to use these sort of tariffs.
00:24:03.000That's actually an argument that the Trump administration is likely to use in court because it will say, hey, court, stop second-guessing us in international affairs.
00:24:22.000We need to be able to use this to solve that problem.
00:24:27.000And I think they might win on that ground.
00:24:29.000I don't think we're going to see, like, Mexico decide, oh, you know, now that Trump lost this tariff power, you know, because of a single court decision, we don't have to listen to him anymore.
00:24:40.000That would be quite foolish, because as we were saying, there are other alternatives.
00:24:45.000And it's very possible that the appeals court will say, you know, no, the president can do this, actually.
00:24:52.000So second this, which is I can imagine there can be immediate action against China, though.
00:24:58.000The China case is far easier to prove.
00:25:01.000I think those documents have already been done probably by Biden.
00:25:04.000And just because there's a new president doesn't mean all the studies I mean.
00:25:07.000I think that those can be inherited from one administration to the other.
00:25:17.000The one that may be in doubt here is there is like this additional tariff because of fentanyl trafficking.
00:25:26.000That could be in doubt, but the administration can just And that is on much steadier legal grounds.
00:25:38.000So there's not a real respite for China here.
00:25:41.000There's potentially a respite for the Canada and Mexico.
00:25:46.000Because basically the court said, we don't think you can link, you can come up with tariffs as a result of fentanyl or illegal immigration.
00:25:54.000I think that either the Supreme Court or the Federal Circuit may say that they don't want courts second guessing when a president is elected.
00:26:21.000that it's an economic tool, it's a softer touch than sanctions, I think that's the strongest of all the arguments.
00:26:30.000We do have fentanyl coming into the country.
00:26:31.000If it's just simply and solely on economic means...
00:26:38.000I mean, it's not hard to say that Germany is definitely compromising American auto companies by Volkswagen and Porsche and Mercedes-Benz and BMW.
00:26:50.000So I guess the question is here, and the markets have been...
00:26:56.000I would have expected a little more of an explosion.
00:26:58.000We saw that early and then it went down and went back up.
00:27:01.000I guess this is just more of a delay of the inevitable.
00:27:04.000President Trump will still be able to use tariffs in one way or another.
00:27:07.000Yes, I think that is the way the market's reading it.
00:27:10.000They said, okay, this court has said stop, but we imagine that the appeals court will put a stay on this order so that Trump will be able to impose the tariffs.
00:27:23.000Outcome of this is pretty unclear, so people don't want to get too excited about it.
00:27:28.000And because there are all these other statutes that authorize tariffs, Trump can come back.
00:27:33.000Frankly, I think it would be a good idea and welcome for Trump to actually go to Congress and say, I want clear authorization to impose reciprocal tariffs.
00:27:44.000Anybody who has an untrade fair trade practice against the United States, the president should be allowed.
00:27:52.000Congress, give me that direct, you know, call it the Reciprocal Tariff Act.
00:27:57.000Give me that direct power so that the courts can't doubt it and nobody else can second guess it.
00:28:04.000I think Congress would probably do it.
00:28:06.000Yes, there are free traders and there are people who would be uncomfortable with that.
00:28:10.000But I think you probably have a majority in both houses to be able to bring that about.
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00:29:41.000So a judge has ruled that the opioid tariffs, the fentanyl tariffs, in other words, on China also are not authorized by the Emergency Economic Powers Act.
00:29:53.000It's actually not really that big of a deal.
00:29:55.000This really just repeats what the court said last night.
00:30:00.000It is, again, saying that this act doesn't authorize the tariffs.
00:30:05.000I don't think that will really matter for China because Trump has so many other Statutory means to impose tariffs on China.
00:30:15.000And they did the studies that they needed to do in the first term.
00:30:23.000If the judge says, no, you can't do the IEPA tariffs, now...
00:30:36.000So I don't think that this new decision is that big of a deal, but it does highlight that the courts really do not, that at least the Court of International Trade does not think that the imposition of tariffs through this act, and the act does not, and I think The act does not say the president can impose tariffs.
00:31:02.000It says he can restrict trade, do trade, he can block things.
00:31:06.000It's a logical extension to say he can impose tariffs, but it's not necessarily clear in the statute.
00:31:14.000I think the courts are probably going to look at both of these things that just came, the one that just came down last night and say, yeah, Congress actually did.
00:31:27.000They really did it, and they didn't put a lot of procedural safeguards.
00:31:31.000And I don't think they're going to use this case to revive the theory of non-delegation.
00:31:36.000They could, but I don't think the Federal Circuit would do that.
00:31:39.000I think that would have to get up to perhaps the Supreme Court for that to happen.
00:31:44.000So, John, in closing here, it seems like the president has invented a new way to use tariffs.
00:31:51.000Typically, they were either used for economic development domestically or national security reasons.
00:31:56.000He now uses this as a negotiation tool and tactic.
00:32:00.000More broadly, do you think this will neuter President Trump's ability to bring other countries to the table, or will he find creative other ways to still use the tariff power?
00:32:09.000I think he will find creative other ways to still use the tariffs.
00:32:12.000I don't think that this is going to substantively affect what they're able to do with tariffs.
00:32:21.000They'll have to pin it on other statutes.
00:32:24.000And like I said, I'm not very sure that this gets upheld at all.
00:32:29.000So, you know, it's a minor stumbling block.
00:32:33.000The Trump's ability to, as you were saying, use tariffs to accomplish diplomacy is going to remain even if this case gets upheld by the appeals court.