Part 10/12:
An important part of the discussion involved the legal framework underpinning US tariffs. The officials clarified that tariffs are considered "search charges" and not taxes, thus avoiding constitutional issues associated with taxing imports directly. They emphasized the need for the president to have emergency powers to impose tariffs swiftly in response to Chinese overreach, referencing the 1977 International Emergency Economic Powers Act (IEEPA).
Questions about the constitutionality of tariffs and recent legal challenges at the Supreme Court were discussed. The officials reiterated their view that emergency powers are essential to respond effectively to Chinese provocations, especially as China seeks to manipulate global markets.