[chuckles]

Okay? The cheese one.

This is the tariff rate quota on cheese that Canada gave a special concession to the European Union un- under CETA.

Now, that's totally legit.

Canada has every right to give the European Union special preference under a free trade agreement.

If the US starts actioning every provision of every trade deal for every trade partner, arguing that it is discrimination, then we're gonna have uncharted hell.

And one thing that the original author of Optimal Tariff Theory speculated about is with retaliation, all bets are off.

Oh, I see.

I

was a little surprised by the fact that there wasn't more attention to major questions and non-delegation.

And you even heard quips with respect to Neil Katyal potentially having his reputation known going forward with respect to non-delegation.

That certainly drew a giggle from the justices.

Part of what happened with the granular minutia, as you note, was because the Department of Justice really pinned its hopes on an absurd argument about regulatory tariffs versus revenue-raising tariffs.

And when you listen to General Sauer constantly rehearsing this theme of foreign-facing tariffs as if somehow they're not taxes, as if somehow the American citizen at the grocery store isn't paying the price, as if American businesses on their imported inputs aren't paying the price.

And perhaps not surprisingly, The justices went down that rabbit hole because there was such an effective opening line from Katyal that terrorists are taxes.

I

This was, in some sense, very granular and very fact-based and parsing of statutory language that you just flicked at, and then it was also kind of playing out at the highest levels of, you know, questions about separation of powers and delegation, and I wonder, it doesn't often happen that you have such a profound split screen (laughs) where you are seeing both micro, micro analysis of, of, you know, the verbs in IEEPA and at the same time really, I think, profound questions (laughs) about the limits of presidential power.

I was a little surprised by the fact that there wasn't more attention to major questions and non-delegation, and you even heard quips with respect to Neal Katyal potentially having his reputation known going forward with respect to non-delegation.

That certainly drew a giggle from the justices.

Part of what happened with the granular minutia, as you note, was because the Department of Justice really pinned its hopes on an absurd argument about regulatory tariffs versus revenue-raising tariffs, and when you listen to General Sauer constantly rehearsing this theme of foreign-facing tariffs as if somehow they're not taxes, as if somehow the American citizen at the grocery store isn't paying the price, as if American businesses on their imported inputs aren't paying the price, and perhaps not surprisingly, the justices went down that rabbit hole because there was such an effective opening line from Katyal that tariffs are taxes.

And what a great way to start the critique, the assault on this spin on IEEPA.

But the justices seemed willing to at least listen to the idea that maybe there was more there there.

So they compared tariffs to quotas.

But that there was at least a vibe among the justices that today is the day we start to use what power we have, uh, to avoid catastrophe.

I

was a little surprised by the fact that there wasn't more attention to major questions and non-delegation.

And you even heard quips with respect to Neil Katyal potentially having his reputation known going forward with respect to non-delegation.

That certainly drew a giggle from the justices.

Part of what happened with the granular minutia, as you note, was because the Department of Justice really pinned its hopes on an absurd argument about regulatory tariffs versus revenue-raising tariffs.

And when you listen to General Sauer constantly rehearsing this theme of foreign-facing tariffs as if somehow they're not taxes, as if somehow the American citizen at the grocery store isn't paying the price, as if American businesses on their imported inputs aren't paying the price.

And perhaps not surprisingly, The justices went down that rabbit hole because there was such an effective opening line from Katyal that terrorists are taxes.

I