Latest / Bloomberg Law / More Tariffs & Comey Asks for Dismissal of Charges
Transcript
- 0:02Speaker 1: This is Bloomberg Law with June Grossel from Bloomberg Radio.
- 0:09Speaker 1: This time around, it took only hours after President Trump's
- 0:13Speaker 1: latest global tariffs took effect last Friday before a legal
- 0:17Speaker 1: challenge was mounted against them. Small businesses filed a pair
- 0:22Speaker 1: of lawsuits in the US Court of International Trade accusing
- 0:26Speaker 1: Trump of unlawfully using Section three oh one of the
- 0:30Speaker 1: Trade Act of nineteen seventy four to the detriment of
- 0:34Speaker 1: American businesses and consumers. California based watchmaker Asher Rapkin is
- 0:40Speaker 1: one of the plaintiffs.
- 0:42Speaker 2: Congresst's tariffs, not one person alone, and my company, like
- 0:45Speaker 2: so many others, are bearing the financial burden of this.
- 0:49Speaker 1: The duties are set at a rate between ten percent
- 0:52Speaker 1: and twelve point five percent and apply to imports from
- 0:56Speaker 1: around sixty economies that the US accused of failing to
- 1:01Speaker 1: enforce bands on foreign goods made with forced labor and
- 1:05Speaker 1: therefore enjoying an unfair competitive advantage. My guest is an
- 1:10Speaker 1: expert in trade law. Timothy Bright built a partner Wileye Rhyn.
- 1:16Speaker 1: Tim start by telling us about the administration's latest global
- 1:21Speaker 1: tariffs relating to forced labor.
- 1:25Speaker 3: This is a very broad news set of tariffs announced
- 1:29Speaker 3: last week, the broadest since the reciprocal tariffs announced in
- 1:34Speaker 3: the Rose Garden under the International Emergency Economic Powers Act,
- 1:39Speaker 3: which was later struck down by the Supreme Court. So
- 1:43Speaker 3: these are new tariffs relating to forced labor on more
- 1:47Speaker 3: than sixty economies or sixty trading partners. These tariffs range
- 1:52Speaker 3: from ten percent to twelve and a half percent. They
- 1:57Speaker 3: took effect on July twenty four, which was coincidentally or
- 2:02Speaker 3: not the same day that the prior ten percent tariffs
- 2:06Speaker 3: were set to expire. And these tariffs are to address
- 2:10Speaker 3: forced labor and supply chains, as well as whether or
- 2:13Speaker 3: not countries have forced labor laws on their books and
- 2:18Speaker 3: enforce them effectively. And I'm sure we all agree that
- 2:21Speaker 3: forced labor is a serious issue. No one wants to
- 2:24Speaker 3: have a product in their home or business that's made
- 2:27Speaker 3: using forced labor. But the question is not just about
- 2:30Speaker 3: is forced labor used, but also do these countries have
- 2:33Speaker 3: laws and do they enforce them. I'll also say there
- 2:36Speaker 3: are lots of exceptions and exclusions to these tariffs that
- 2:40Speaker 3: were announced last week. Some are products specific, and also
- 2:44Speaker 3: if there are other tariffs involved, there may be exclusions
- 2:48Speaker 3: from these ten to twelve and a half percent tariffs.
- 2:51Speaker 1: Is this just, you know, find a reason to impose
- 2:54Speaker 1: new tariffs because the report from the US Trade Representative
- 2:59Speaker 1: doesn't say whether specific nations are actually importing goods made
- 3:05Speaker 1: with forced labor or whether products are being made in
- 3:09Speaker 1: those countries using forced labor. I mean, is this just
- 3:12Speaker 1: a made up reason to impose new tariffs?
- 3:15Speaker 3: Well, that's what opponents are alleging, that this is not
- 3:19Speaker 3: just a coincidence that the new tariffs were announced to
- 3:22Speaker 3: replace the old tariffs that expired, and that these are
- 3:25Speaker 3: just a pretext. But that being said, the fact that
- 3:29Speaker 3: countries are starting to take greater action against forced labor
- 3:33Speaker 3: means that there is a reason to take action and
- 3:37Speaker 3: that it remains an important issue and one where the
- 3:41Speaker 3: United States has stronger laws than many of our trading partners.
- 3:45Speaker 3: We have the Weager Force Labor Prevention Act, which has
- 3:49Speaker 3: caused seizure of hundreds of millions of dollars worth of
- 3:53Speaker 3: goods at the border that are suspected to use force labor.
- 3:56Speaker 3: So it is a real issue. But at the same
- 3:59Speaker 3: time time that the timing is perhaps not just a
- 4:03Speaker 3: coincidence that the new rates took effect on the same
- 4:07Speaker 3: day that the old rates expired.
- 4:09Speaker 1: So there's already been a court challenge. Tell us about
- 4:12Speaker 1: the court challenge.
- 4:14Speaker 3: So some of the plaintiffs that challenged earlier Trump tariffs
- 4:17Speaker 3: have again filed lawsuit at the Court of International Trade.
- 4:22Speaker 3: And these plaintiffs have alleged that USTR's forced labor investigation
- 4:29Speaker 3: was designed to impose a predetermined tariff policy. And they
- 4:35Speaker 3: said in fact that the rationale of addressing forced labor
- 4:39Speaker 3: is just a pretext for tariffs. So there has already
- 4:43Speaker 3: been a challenge. The Court of International Trade will hear it.
- 4:47Speaker 3: That being said, courts to date have largely upheld prior
- 4:52Speaker 3: administration's use of Section three oh one, including when the
- 4:58Speaker 3: first Trump administration and imposed tariffs on hundreds of billions
- 5:03Speaker 3: of dollars worth of goods coming from China, So the
- 5:07Speaker 3: courts have largely been supportive of the president's use of
- 5:12Speaker 3: this law. That being said, this is a very sweeping
- 5:15Speaker 3: action and it remains to be seen if there is
- 5:20Speaker 3: enough legal support in these sixty different investigations to allow
- 5:26Speaker 3: these tariffs to stand in court. I'll also note that
- 5:29Speaker 3: the administration trying to take this action in a way
- 5:32Speaker 3: so that each of the sixty investigations stands separately, so
- 5:35Speaker 3: that an appeal would only affect individual country tariffs rather
- 5:40Speaker 3: than the entire sixty countries structure that was announced last week.
- 5:45Speaker 1: Yeah, I was going to ask whether the court will
- 5:48Speaker 1: examine the justification for the tariffs on each of the countries.
- 5:53Speaker 3: That's what the administration is trying to encourage, but it's
- 5:57Speaker 3: not clear yet. And I think the plaintiffs are challenging
- 6:02Speaker 3: the whole architecture, not just individual country findings, but the
- 6:06Speaker 3: whole fact that this was not really about forced labor.
- 6:11Speaker 3: In their view, it was about replacing the other tariffs
- 6:15Speaker 3: that were struck down by the Supreme Court or that
- 6:18Speaker 3: expired after their ninety day period ran its course.
- 6:22Speaker 1: And the businesses are represented by the Liberty Justice Center,
- 6:28Speaker 1: and that was the group that challenged Trump's earlier global tariffs.
- 6:33Speaker 3: That's right, The Liberty Justice Center is the group that
- 6:36Speaker 3: filed these actions. They filed on behalf of a couple
- 6:40Speaker 3: of small businesses, and they've structured this as a potential
- 6:44Speaker 3: class action so that many other plaintiffs can potentially join
- 6:49Speaker 3: to strengthen the suit against the Trump administration.
- 6:52Speaker 1: So let's talk about the next round of Section three
- 6:56Speaker 1: oh one tariffs. Where does that stand?
- 7:00Speaker 3: So the next and potentially bigger set of tariffs to
- 7:06Speaker 3: come is also under section three h one of the
- 7:10Speaker 3: Trade laws. So again this challenges unreasonable practices of foreign
- 7:16Speaker 3: countries that burden and restrict US commerce. And these investigations
- 7:21Speaker 3: relate to structural overcapacity. So where do countries maintain massive
- 7:29Speaker 3: amounts of subsidized capacity that ends up harming US industries
- 7:35Speaker 3: because that excess capacity gets sent here and negatively affects
- 7:42Speaker 3: US companies and industries that are trying to compete. So
- 7:46Speaker 3: this investigation involves sixteen countries. China, of course, is the
- 7:51Speaker 3: biggest and is probably the biggest problem as it relates
- 7:55Speaker 3: to structural overcapacity. Many of my clients have seen over
- 7:59Speaker 3: the years, whether it's steel, aluminum, solar wood products, that
- 8:05Speaker 3: China builds massive amounts of state subsidized capacity that that
- 8:11Speaker 3: results in dumping, and that access product gets sent to
- 8:14Speaker 3: the US market, which is large and relatively open and
- 8:18Speaker 3: attractively priced. So these investigations are less predictable, and they've
- 8:25Speaker 3: been going on in parallel with the forced labor investigations.
- 8:28Speaker 3: But this will be a very important outcome and many
- 8:32Speaker 3: businesses and industries are watching this carefully to see what
- 8:37Speaker 3: USTR does. One key question is the question of how
- 8:42Speaker 3: do you measure over capacity. Some industries, like steel, have
- 8:48Speaker 3: measures in place to gauge, while China has much more
- 8:53Speaker 3: steel capacity than it needs and sends all of its
- 8:56Speaker 3: access here. Other industries, it's less clear. Even though there
- 9:00Speaker 3: is over capacity, how you measure it and how will
- 9:03Speaker 3: the US Trade representative gather all that information for a
- 9:08Speaker 3: country as a whole.
- 9:09Speaker 1: Now Canada is getting special treatment. The administration has announced
- 9:15Speaker 1: plans to impose fifty percent tariffs on a range of
- 9:19Speaker 1: Canadian goods using a century old law, the Smooth Haley
- 9:25Speaker 1: ter eff Act.
- 9:26Speaker 3: Yes. Yes, so the administration threatened action or announced action
- 9:31Speaker 3: thirty days in advance under section three thirty eight of
- 9:35Speaker 3: the Trade Laws. As you mentioned, this is part of
- 9:38Speaker 3: the Smooth Holey Tariff Act, which was highlighted in everyone's
- 9:43Speaker 3: favorite movie Ferris Bueller's Day Off. Yes, a provision that
- 9:47Speaker 3: has almost never been used before, and I think not
- 9:51Speaker 3: in the last forty or fifty years. And there are
- 9:55Speaker 3: three types of a wedged discrimination against US products by
- 10:01Speaker 3: Canada relating to motor vehicles, dairy products, and alcoholic beverages,
- 10:09Speaker 3: So for example, it's fairly well known that Canadian liquor
- 10:13Speaker 3: stores are not carrying US alcoholic beverages. And similarly, there
- 10:19Speaker 3: have been long standing disputes with respect to Canada and
- 10:22Speaker 3: dairy products. So those are the alleged discrimination by the
- 10:26Speaker 3: Trump administration. The tariffs that are announced that would take
- 10:30Speaker 3: effect in a month would be fifty percent tariffs, affecting
- 10:34Speaker 3: about twenty billion dollars in trade. Again, there would be
- 10:39Speaker 3: some carve outs and some exclusions, for example, on products
- 10:43Speaker 3: already subject to national security tariffs. And I think it's
- 10:47Speaker 3: clear that this announcement is in part to build leverage
- 10:53Speaker 3: to use against Canada in the ongoing USMCA negotiations to
- 11:00Speaker 3: try and shure up that trade agreement. The Trump administration,
- 11:03Speaker 3: which of course negotiated USMCA in the first place and
- 11:08Speaker 3: said a number of years ago that it was the
- 11:10Speaker 3: best trade deal ever, now has major concerns and has
- 11:14Speaker 3: threatened to not renew the agreement, and negotiations are ongoing there.
- 11:19Speaker 3: So we'll monitor to see if these tariffs actually go
- 11:23Speaker 3: into effect in thirty days or whether there can be
- 11:26Speaker 3: some sort of resolution. I will point out that this
- 11:30Speaker 3: is a real problem for a number of US Canada
- 11:33Speaker 3: supply chains. So these tariffs, if they do take a fact,
- 11:37Speaker 3: could end up harming some US companies in industries that
- 11:41Speaker 3: the Trump administration is trying to help.
- 11:44Speaker 1: Jim, you think that the threat of Canadian tariffs is
- 11:49Speaker 1: a ploy for negotiations? Is there any other reason why
- 11:54Speaker 1: Trump is specifically singling out Canada for special treatment, our
- 12:01Speaker 1: neighbor to the north and longtime ally.
- 12:04Speaker 3: Well, it's a great question why President Trump has chosen
- 12:08Speaker 3: to focus on allies rather than to focus on China
- 12:13Speaker 3: and China's growing influence in the world. But for whatever reason,
- 12:18Speaker 3: Canada has been a particular target. And even in the
- 12:23Speaker 3: USMCA negotiations, United States and Mexico have had better and
- 12:30Speaker 3: more productive discussions, and unfortunately the same has not been
- 12:34Speaker 3: the case with US and Canada. So I can't explain
- 12:38Speaker 3: why Canada is being singled out here. It is a
- 12:41Speaker 3: serious issue when you threaten tariffs of this nature on
- 12:46Speaker 3: not only a neighbor to the north, but obviously a
- 12:49Speaker 3: longstanding ally. So we'll just have to see how this
- 12:52Speaker 3: plays out, and hopefully it won't come to the point
- 12:55Speaker 3: where these tariffs are actually imposed.
- 12:57Speaker 1: Would tariffs on Canada violate the US Mexico Canada Agreement.
- 13:03Speaker 3: Canada would say yes that those tariffs would not be
- 13:07Speaker 3: justified and would be a violation of USMCA. So again,
- 13:11Speaker 3: we'll have to monitor whether or not these take place
- 13:14Speaker 3: and go into a fact or if some sort of
- 13:17Speaker 3: negotiation can resolve enough issues that this tariff threat can
- 13:20Speaker 3: be removed.
- 13:21Speaker 1: Stay with me, tim coming up next, will there be
- 13:24Speaker 1: tariffs on generic drugs? I'm June Grosso and you're listening
- 13:28Speaker 1: to Bloomberg. From the start of his second term, President
- 13:35Speaker 1: Donald Trump has made clear he'll put tariffs at the
- 13:38Speaker 1: center of US economic policy. I've been talking to trade
- 13:42Speaker 1: attorney Timothy Brightbill of Wileie Rhine. There are so many
- 13:47Speaker 1: tariffs and so many possible tariffs. So let's go to
- 13:51Speaker 1: tariff announcements on Brazil and generic drugs. Where does that stand?
- 13:56Speaker 3: Yes? So last week was another chaotic week in the
- 14:00Speaker 3: end of tariffs and trades. So in addition to the
- 14:02Speaker 3: forced labor tariffs on sixty economies, we had the conclusion
- 14:06Speaker 3: of another investigation that was focused only on Brazil and
- 14:11Speaker 3: that resulted in twenty five percent tariffs that were put
- 14:15Speaker 3: in place last week again under Section three HO one.
- 14:19Speaker 3: These were designed to address several unfair Brazilian trade practices,
- 14:24Speaker 3: according to the administration, including discriminatory digital trade rules, content
- 14:31Speaker 3: removal orders on US tech platforms, barriers in the ethanol market,
- 14:36Speaker 3: deforestation concerns, sort of a variety of unfair trade practices
- 14:41Speaker 3: from Brazil. So twenty five percent tariffs have been enacted,
- 14:46Speaker 3: but again there have been major exceptions for consumer goods
- 14:51Speaker 3: like coffee and orange juice, as well as major Brazilian
- 14:55Speaker 3: industries including aircraft and airplane parts. So I think there's
- 15:02Speaker 3: a balancing going on here with the Trump administration trying
- 15:05Speaker 3: to address unfair trade practices in Brazil and other countries,
- 15:10Speaker 3: but also very aware of affordability issues and not wanting
- 15:16Speaker 3: to cause problems for consumers who are buying consumer goods
- 15:20Speaker 3: or in grocery stores and so forth. So that investigation
- 15:24Speaker 3: wrapped up last week, and then there was an interesting
- 15:27Speaker 3: tariff threat. There has been an ongoing investigation of generic drugs,
- 15:33Speaker 3: and President Trump suggested that there would be tariffs imposed
- 15:38Speaker 3: of one hundred percent in one year on imports of
- 15:43Speaker 3: generic drugs, but that that would leave time for generic
- 15:46Speaker 3: drug manufacturers to build manufacturing here in the United States. Now,
- 15:52Speaker 3: that was just a social media post by the President.
- 15:56Speaker 3: To my knowledge, there hasn't been any follow up yet
- 15:59Speaker 3: or any White House announcements of details of how that
- 16:02Speaker 3: would work. But another sector to monitor because of concerns
- 16:07Speaker 3: that so many generic drugs are not made here in
- 16:10Speaker 3: the United States.
- 16:11Speaker 1: Well, it's Congress doing anything about the tariffs.
- 16:14Speaker 3: Congress is very concerned, and I think it's fair to
- 16:17Speaker 3: say there are bipartisan concerns. There have been a variety
- 16:22Speaker 3: of legislative proposals, not that these will pass this year,
- 16:27Speaker 3: but to sort of stake out ground in advance of
- 16:29Speaker 3: the midterm elections and ultimately the presidential elections. One significant
- 16:34Speaker 3: new legislative proposal is from Senator Ron Wyden of Oregon
- 16:40Speaker 3: that carries particular weight given his role as the ranking
- 16:45Speaker 3: member of the Senate Finance Committee, which deals with all
- 16:48Speaker 3: trade related legislation. So he has introduced something called the
- 16:51Speaker 3: Congressional Trade Powers Reform Act. This would require the President
- 16:55Speaker 3: to submit to Congress some of the proposed new tariffs,
- 17:00Speaker 3: for example, national security tariffs under Section two thirty two
- 17:04Speaker 3: or any new actions under Section three oh one, and
- 17:09Speaker 3: it would also repeal some of these very old trade authorities,
- 17:14Speaker 3: such as Section one twenty two and Section three thirty eight.
- 17:18Speaker 3: So for laws that have been on the books for
- 17:20Speaker 3: fifty years or more but have never really been used,
- 17:23Speaker 3: this legislation would simply say no, the president doesn't have
- 17:27Speaker 3: that authority anymore.
- 17:28Speaker 1: Congress has that Auford just broadly. Trump treats tariffs as
- 17:33Speaker 1: the be all and end all of economic policy. But
- 17:38Speaker 1: don't the tariffs worsen the concerns about affordability? The Yale
- 17:42Speaker 1: Budget Lab estimates that Trump's tariffs will increase costs for
- 17:46Speaker 1: the average US household by one one hundred dollars each year.
- 17:51Speaker 1: I mean, the US has lost seventy five thousand factory
- 17:55Speaker 1: jobs and he says it will boost US manufacturing. And
- 17:59Speaker 1: the tariffs didn't narrow the US trade deficit. It hit
- 18:03Speaker 1: record highs in twenty twenty five. I know he likes
- 18:05Speaker 1: to use them as a cudgel against other countries, but
- 18:09Speaker 1: for Americans, what are the benefits?
- 18:12Speaker 3: Sure? Well, this is the real question. And I do
- 18:15Speaker 3: think from my experience in more than twenty five years
- 18:18Speaker 3: as a trade lawyer, that there are ways to use
- 18:21Speaker 3: tariffs strategically to strengthen US industries and companies that have
- 18:29Speaker 3: been harmed by unfair trade. So there is a way
- 18:32Speaker 3: to do it. But the real question is what is
- 18:36Speaker 3: the benefit or harm of all of the chaos of
- 18:39Speaker 3: the last year and a half. And this comes down
- 18:43Speaker 3: to ultimately affordability, which will be the issue of the
- 18:47Speaker 3: midterm elections and most likely the presidential elections, and the
- 18:52Speaker 3: general public is going to decide to tariffs have any benefit?
- 18:57Speaker 3: Do we see any growth in jobs and manifaction industries?
- 19:01Speaker 3: In some cases you do. I have clients who have benefited,
- 19:04Speaker 3: But at the same time, is it increasing the costs
- 19:08Speaker 3: on consumer goods for most Americans? Again, it's going to
- 19:11Speaker 3: be the critical issue of the election, and I think
- 19:15Speaker 3: that's why the administration, even as it's announcing these things,
- 19:19Speaker 3: is trying to do them in a way that causes
- 19:22Speaker 3: as little harm as possible.
- 19:24Speaker 1: How are your clients dealing with the continued threats of
- 19:28Speaker 1: more and more tariffs and the uncertainty. Are they taking
- 19:32Speaker 1: any special steps?
- 19:34Speaker 3: Well, it's a real challenge for companies and industries that
- 19:37Speaker 3: are trying to run businesses. So again, some of them
- 19:40Speaker 3: are supportive of some of these terrif actions, particularly if
- 19:44Speaker 3: they face unfair trade from China and Chinese owned companies,
- 19:49Speaker 3: perhaps in Vietnam and Malaysia, but others. The chaos and
- 19:54Speaker 3: the unpredictability make it very difficult to invest, to hire workers,
- 20:00Speaker 3: to build global supply chains, and these challenges are not
- 20:04Speaker 3: going away. They don't seem to be calming down. If
- 20:07Speaker 3: last week was any indication, the chaos and the unpredictability
- 20:11Speaker 3: are unfortunately going to continue in that Again, it does
- 20:15Speaker 3: help some businesses in some industries, but it's very harmful
- 20:19Speaker 3: to many others.
- 20:20Speaker 1: Is there anything else we should be watching for?
- 20:22Speaker 3: Tim There are other things to keep an eye on.
- 20:25Speaker 3: We have additional potential tariffs in the near term, so
- 20:31Speaker 3: don't forget about the various national security tariff investigations under
- 20:36Speaker 3: Section two thirty two of the Trade Laws, many of
- 20:39Speaker 3: which investigations have been going on for almost a year.
- 20:43Speaker 3: So one action that we're monitoring closely relates to polysilicon
- 20:50Speaker 3: and solar products such as solar cells and solar panels.
- 20:55Speaker 3: That investigation should be coming to a close within the
- 20:58Speaker 3: next few weeks. It will be important to see how
- 21:01Speaker 3: the administration addresses this problem. This is one example where
- 21:05Speaker 3: we really have seen Chinese over capacity spread around the
- 21:10Speaker 3: world to countries like Vietnam and Malaysia and now even Ethiopia,
- 21:17Speaker 3: laws Indonesia and so forth. So we'll be monitoring that
- 21:21Speaker 3: in the next few weeks, and there are other investigations
- 21:23Speaker 3: going on. So we expect this to continue to be
- 21:27Speaker 3: a big issue for this president and this administration in
- 21:31Speaker 3: the weeks and months to come.
- 21:33Speaker 1: So we'll be talking again and again, Tim, thanks so much.
- 21:37Speaker 1: That's Timothy Bright Bill, a partner at Wilie Ryan. Coming
- 21:41Speaker 1: up next on The Bloomberg Lawn Show. Former FBI director
- 21:45Speaker 1: James Comy has been charged for threatening President Donald Trump
- 21:50Speaker 1: in a social media post which showed seashelles spelling out
- 21:53Speaker 1: the numbers eighty six forty seven. Comy is asking a
- 21:57Speaker 1: federal judge to dismiss the indict saying it was not
- 22:01Speaker 1: a call to violence against Trump, but rather protected political speech.
- 22:06Speaker 3: Welderbach, this time about a picture of seashells on a
- 22:11Speaker 3: North Carolina beach a year ago, and this won't be
- 22:15Speaker 3: the end of it.
- 22:16Speaker 1: The Trump administration indicted former FBI director James Comy for
- 22:21Speaker 1: the second time in April, this time charging him with
- 22:25Speaker 1: threatening President Donald Trump in a social media post which
- 22:29Speaker 1: showed seashells spelling out the number eighty six forty seven,
- 22:34Speaker 1: eighty six.
- 22:34Speaker 2: You know it's a mob term for kill them.
- 22:38Speaker 1: You know, you ever see the movies eighty six the
- 22:41Speaker 1: mobster says to one of his wonderful associates eighty six
- 22:45Speaker 1: that means kill him. In fact, the term eighty six
- 22:49Speaker 1: is widely understood to be a restaurant term meaning to
- 22:53Speaker 1: be out of something. And Comy's lawyers argue that dictionaries, context, precedent,
- 22:59Speaker 1: and common sense show it was not a call to
- 23:02Speaker 1: violence against Trump, but protected political speech. They're asking a
- 23:07Speaker 1: judge to dismiss the charges. My guest is first Amendment
- 23:11Speaker 1: expert Timothy Zick, a professor at William and Mary Law School.
- 23:15Speaker 1: Tim in his motion to dismiss Comy, makes several arguments,
- 23:20Speaker 1: sometimes alternative arguments. So start by telling us what a
- 23:24Speaker 1: true threat is and Comy's claim that the indictment doesn't
- 23:29Speaker 1: allege a true threat.
- 23:31Speaker 2: So the Supreme Court has defined a true threat as
- 23:34Speaker 2: a serious expression of an intent to commit an unlawful
- 23:38Speaker 2: act of violence against another person. In an addition, has
- 23:42Speaker 2: said that a reasonable objective observer would have to view
- 23:47Speaker 2: what was said or communicated as a threat of violence.
- 23:51Speaker 2: So one of the Prince of arguments, he is it
- 23:53Speaker 2: just doesn't meet the definition. The seashells arranged by somebody
- 23:56Speaker 2: else posted by Comy to social media does not constitute
- 24:01Speaker 2: expression of a serious intent to do bodily injury to
- 24:04Speaker 2: the president.
- 24:05Speaker 1: I mean, the indictment is so threadbare. There's no reference
- 24:08Speaker 1: to what evidence they presented to a grand jury to
- 24:11Speaker 1: make them return a true bill. Here they said that
- 24:15Speaker 1: posting a photograph which depicted seashells arranged in a pattern
- 24:19Speaker 1: making out eighty six forty seven, which a reasonable recipient
- 24:23Speaker 1: who's familiar with the circumstances would interpret as a serious
- 24:27Speaker 1: expression of an intent to do harm to President Trump.
- 24:31Speaker 1: Could it be that they didn't present anything else to
- 24:33Speaker 1: the grand jury.
- 24:34Speaker 2: It's possible that that's all they presented to the grand jury.
- 24:38Speaker 2: You probably know there been some shenanigans with federal prosecutors
- 24:42Speaker 2: and grand juries and other cases, including I think one
- 24:45Speaker 2: against Komy, another one against Comy. But any event of
- 24:48Speaker 2: the administration has done this in countless cases with regard to,
- 24:52Speaker 2: for example, protesters anti ice protesters who've been charged. There's
- 24:57Speaker 2: always a promise that there's more to come, there's more evidence,
- 25:00Speaker 2: and then courts offer the administration's attorneys, the DJA attorneys,
- 25:04Speaker 2: an opportunity to provide it, and they never do. So
- 25:07Speaker 2: I suspect there's not much more, if anymore to this
- 25:11Speaker 2: case than the seashells, the social media posts, and of
- 25:14Speaker 2: course you know the prior relationship between these two men,
- 25:18Speaker 2: but that really is a function of sort of political
- 25:21Speaker 2: difference or you know, Comey's actions as FBI director, and
- 25:26Speaker 2: that's all public record. So I just don't know what
- 25:29Speaker 2: else there could be. Context is important, that's true, but
- 25:33Speaker 2: it doesn't, you know, strike me that there's some smoking
- 25:36Speaker 2: gun here that shows that this was a serious expression
- 25:42Speaker 2: of an intent to harm the president. So, you know,
- 25:46Speaker 2: it seems to me, even by the Administration's you know,
- 25:49Speaker 2: very low bar standards in these sorts of prosecutions, an
- 25:53Speaker 2: extraordinarily weak case. I mean, you have precedents from the
- 25:56Speaker 2: Supreme Court that have turned away indictments and arrests for
- 26:02Speaker 2: statements that are far more a sort of violence intentive.
- 26:07Speaker 2: Then say, you know, the seashell So in wats versus
- 26:10Speaker 2: the United States during the Vietnam era, some young man says, well,
- 26:13Speaker 2: if they ever put a gun in my hand. The
- 26:15Speaker 2: first person I'm going to point it at is Lyndon
- 26:19Speaker 2: Bates Johnson. And in another case, a worker in an office,
- 26:23Speaker 2: a public employee says to a coworker, look, if they
- 26:26Speaker 2: ever go after Reagan again, I hope they get them. Now.
- 26:29Speaker 2: That's not nice to say, but it is clearly protected
- 26:32Speaker 2: political hyperbole under the Supreme Courts presidence, and I would
- 26:35Speaker 2: say under the Fourth Circuits precedence, which is where this
- 26:38Speaker 2: case is going to presumably end up if it does
- 26:41Speaker 2: get appealed.
- 26:42Speaker 1: There are T shirts and hats with the eighty six
- 26:45Speaker 1: forty six used during Biden's presidency. I mean, does that
- 26:50Speaker 1: come up anywhere?
- 26:52Speaker 2: I think that's part of the context, right, if you
- 26:54Speaker 2: think about the words that are used, or in this case,
- 26:56Speaker 2: the numbers that are used, as the defense lawyer point out, look,
- 27:01Speaker 2: they were used during Biden's presidency. Eighty six forty seven,
- 27:04Speaker 2: in fact, is all over T shirts and political billboards
- 27:09Speaker 2: and all the rest. And in fact, there's a recent
- 27:11Speaker 2: case out of the District of Columbia where there was
- 27:14Speaker 2: a sign up using those very same numbers, and a
- 27:17Speaker 2: court threw the case out on the grounds that it
- 27:20Speaker 2: could not possibly be interpreted as a true threat. So
- 27:25Speaker 2: I think the sort of stars are all aligned in
- 27:27Speaker 2: the same direction here, that this is a form of
- 27:30Speaker 2: if it's even that sort of hyperbolic or rhetorical political communication,
- 27:35Speaker 2: and nothing more. I think it is important if you
- 27:38Speaker 2: look at dictionary definitions and common understandings of what these
- 27:42Speaker 2: numbers mean when arranged in that way, that there's very thin,
- 27:46Speaker 2: if any evidence that they point to any kind of violence,
- 27:49Speaker 2: you know, get rid of or in the case of
- 27:52Speaker 2: a restaurant, there's no more of that's eighty six. And
- 27:55Speaker 2: so the sort of violent use of that set of
- 27:58Speaker 2: numbers is very rare, not reflecting in dictionaries, and the
- 28:03Speaker 2: whole thing just reeks of of course, more of the
- 28:05Speaker 2: same sort of retribution against the president's political enemies. And
- 28:09Speaker 2: he always says the quiet part out loud. He wanted
- 28:12Speaker 2: Pam Bondi to arrest Comy for something. There must be something.
- 28:17Speaker 2: And they finally found a prosecutor who was willing to
- 28:20Speaker 2: with a straight face present this to a grand jury.
- 28:23Speaker 2: And I think it's going to be another dismissal and
- 28:27Speaker 2: an embarrassment. But here's the thing about the Trump administration.
- 28:30Speaker 2: I don't think they're embarrassed. I think the point is
- 28:33Speaker 2: to put Tomy through the trouble of being charged, arrested,
- 28:37Speaker 2: having to plead in front of a judge, you know,
- 28:40Speaker 2: And that all happened to Trump, so it should happen
- 28:43Speaker 2: to all these political enemies, and that's what this is
- 28:45Speaker 2: really about.
- 28:46Speaker 1: Also, they argue that even if the alternative argument, so
- 28:50Speaker 1: even if this could be taken to suggest violence, it
- 28:54Speaker 1: would be political hyperbole and not a true threat. So
- 28:58Speaker 1: tell us about that argument meant in the context of
- 29:02Speaker 1: the Supreme Court affording political speech the highest standard of protection.
- 29:08Speaker 2: Yeah, I mean, it's obviously recognized a category of a
- 29:12Speaker 2: speech that can be criminalized, called a true threat. But
- 29:15Speaker 2: when you define that as a category, if you're the court,
- 29:19Speaker 2: you're very careful to make sure the definition does not
- 29:22Speaker 2: sweep in political opposition, even when it is sort of
- 29:26Speaker 2: couched in violent terms. So, even assuming you could read
- 29:29Speaker 2: violence into eighty six forty seven, as I said in
- 29:33Speaker 2: Watts and in other cases, the Court has said, well,
- 29:35Speaker 2: you have to be very careful not to allow the
- 29:39Speaker 2: government to criminalize opposition to political power, in this case
- 29:44Speaker 2: the president of the United States, and in those cases too,
- 29:46Speaker 2: and there are other cases of similar ilk right. So
- 29:49Speaker 2: there's a civil rights era case where a civil rights
- 29:52Speaker 2: leader stands up in front of people he wants to
- 29:54Speaker 2: participate in a boycott of white businesses in southern town
- 29:57Speaker 2: and he says, look, if you don't come along, there
- 30:00Speaker 2: may have to be some discipline and next may have
- 30:03Speaker 2: to be broken. And that was a civil case. But
- 30:05Speaker 2: the same question arose, well, is that a threat? Is
- 30:08Speaker 2: that a threat of violence? No, that's the kind of
- 30:10Speaker 2: strong political rhetoric the First Amendment protects. So even if,
- 30:15Speaker 2: as the defense points out, even if you could ring
- 30:18Speaker 2: some kind of violent imagery out of eighty six forty seven,
- 30:23Speaker 2: that is still protected speech. It is not a true threat.
- 30:27Speaker 2: And that is the sort of cost, if one wants
- 30:30Speaker 2: to look at it that way, of having such a
- 30:32Speaker 2: robust free speech right in the United States. You can,
- 30:36Speaker 2: and speakers often do make these sorts of communications, even
- 30:40Speaker 2: when they implicate, you know, sort of violence.
- 30:42Speaker 1: Also, you know, if this actually went to trial, the
- 30:46Speaker 1: prosecution would have to prove that Comy knowingly and willfully
- 30:51Speaker 1: made the threat. I mean Comy deleted the post and
- 30:55Speaker 1: said that he didn't realize that some people associate the
- 31:00Speaker 1: those numbers with violence. So for the prosecution to prove
- 31:04Speaker 1: he had intent seems like it would be a huge hurdle.
- 31:08Speaker 2: Yeah, that's not something you can resolve on the emotion
- 31:10Speaker 2: to dismiss, But the sort of mental state of the
- 31:13Speaker 2: speakers would be You're absolutely right critical if this thing
- 31:16Speaker 2: were to go to trial, whether or not Comy would testify,
- 31:20Speaker 2: I think is an interesting question if it goes that far.
- 31:23Speaker 2: But the statutes that he's been prosecuted under have mental
- 31:25Speaker 2: state requirements, as does the First Amendment. The First Amendment,
- 31:29Speaker 2: the court said in the case called counter mem versus Colorado,
- 31:32Speaker 2: requires that you show that the speaker acted recklessly a
- 31:36Speaker 2: former sort of subjective intent. But you knew there was
- 31:39Speaker 2: a danger here that someone would view this as a
- 31:42Speaker 2: threat of violence, and you spoke anyway. But I just
- 31:45Speaker 2: don't see how you get to you know, if Watts's
- 31:48Speaker 2: speech is protected and other statements about you know, actually
- 31:52Speaker 2: killing the president more directly or protected, how do you
- 31:55Speaker 2: get there with something like this and then Watts, for example,
- 31:58Speaker 2: the Vietnam Aery case. Part of the reason the court
- 32:01Speaker 2: said it's not a threat is it's so highly conditional.
- 32:03Speaker 2: Here's this young man, I think he was eighteen years old.
- 32:05Speaker 2: He's at a political rally, he makes this statement and
- 32:08Speaker 2: people laugh. But also there's really just no prospects that
- 32:11Speaker 2: violence would be visited on President Johnson. So too here.
- 32:16Speaker 1: We've heard violent rhetoric from President Trump repeatedly over the years.
- 32:22Speaker 1: But does that have any bearing at all on this case.
- 32:25Speaker 2: I don't think it does. You know, the question is
- 32:28Speaker 2: whether in this case the speaker Comy can be convicted
- 32:32Speaker 2: of the offenses he's been charged with. But I do
- 32:35Speaker 2: think in terms of you know, whether you want to
- 32:37Speaker 2: call it a slippery slope argument or just a fairness argument,
- 32:41Speaker 2: there's a lot of violent political rhetoric in the United States,
- 32:44Speaker 2: and again you could see that as the cost of
- 32:46Speaker 2: having this robust First Amendment. But the president himself has
- 32:51Speaker 2: engaged in a sort of speech. There are some on
- 32:53Speaker 2: the other side of the political aisle who used eighty six,
- 32:57Speaker 2: and they weren't prosecuted. Of course, god Blanche has said
- 33:01Speaker 2: the acting Attorney General, Look, we're not going to go
- 33:03Speaker 2: after everyone, then why are you going after Comy?
- 33:06Speaker 3: Right?
- 33:06Speaker 2: So I think it does matter that a lot of
- 33:08Speaker 2: political rhetoric circulates. It's long understood to be protected by
- 33:13Speaker 2: the First Amendment, and their questions as to why Comy's
- 33:17Speaker 2: being singled out. That's going to go, I think to
- 33:20Speaker 2: another motion which is going to be filed to dismiss
- 33:22Speaker 2: the case on the grounds of vindictive and selective prosecution,
- 33:26Speaker 2: and those raise different issues. That's not about the content
- 33:29Speaker 2: of his speech, that's about how and why he was
- 33:32Speaker 2: selected among all those who use similar language to be
- 33:36Speaker 2: criminally charged.
- 33:37Speaker 1: What standard will the judge use in deciding whether to
- 33:41Speaker 1: throw the case out.
- 33:42Speaker 2: Ordinarily those are hard cases to get thrown out on
- 33:45Speaker 2: a motion to dismiss, because, as you said, context matters.
- 33:49Speaker 2: Is there more to it? Do we need more fact finding?
- 33:52Speaker 2: And the intent or the mental state of the defendant
- 33:55Speaker 2: typically matters, and that's usually not something you can resolve
- 33:58Speaker 2: on motion papers dismiss. This may again be that rare
- 34:02Speaker 2: case where you can in fact throw it out, and
- 34:05Speaker 2: the defendants make the point that even trying him, putting
- 34:08Speaker 2: him through these paces is its own sanction for what's
- 34:12Speaker 2: clearly protected speech. My suspicion, my expectation, is that the
- 34:16Speaker 2: administration is going to say, or the Department's going to say, look,
- 34:19Speaker 2: we need factual development here, and discovery should take place,
- 34:22Speaker 2: and you shouldn't throw this out, you know, we promise
- 34:24Speaker 2: there's more to this, and they keep doing that. Now,
- 34:27Speaker 2: whether a judge has patience for that is another matter.
- 34:31Speaker 2: And then of course if it's dismissed, it'll immediately be
- 34:34Speaker 2: appealed and all of that. Right, So it is rare
- 34:38Speaker 2: to succeed on these sorts of motions. But one of
- 34:41Speaker 2: the things that makes it more plausible is just sort
- 34:44Speaker 2: of the extraneous statements of the President and the administration
- 34:48Speaker 2: and the Attorney General about Cami in particular, and you know,
- 34:53Speaker 2: Trump sort of telling his attorney general pursue these people
- 34:57Speaker 2: for something. Now, a court might not say, you know,
- 35:00Speaker 2: that's evidence in the case, but it just has to
- 35:03Speaker 2: have some impact on how you view cases like this.
- 35:06Speaker 2: I would think.
- 35:07Speaker 1: Also, the FBI has already investigated this, and it took
- 35:13Speaker 1: what close to a year for them to come up
- 35:15Speaker 1: with this indictment, So how much more information is there
- 35:20Speaker 1: out there to discover?
- 35:21Speaker 2: You know, ordinarily would have a period of discovery, And
- 35:25Speaker 2: again I'd be surprised if there's anything more to this.
- 35:29Speaker 2: You know, they did I think Seese, Comey's devices, his
- 35:32Speaker 2: phone and so forth. So it's you know possible he
- 35:36Speaker 2: made other derogatory statements about Trump, but joined the multi
- 35:39Speaker 2: million who've done that, that's not evidence of an intentive
- 35:42Speaker 2: threaten to murder him. So I'd just be very surprised
- 35:46Speaker 2: that this didn't just fizzle out like so many cases
- 35:49Speaker 2: have where they eventually dropped the charges. There's a recent one,
- 35:52Speaker 2: a sort of union leader out in California during an
- 35:55Speaker 2: antiis protest. He was arrested for allegedly this is a
- 35:59Speaker 2: common charge, interfering with ICE's activities and assaulting an officer. Well,
- 36:05Speaker 2: they just dropped it after months and months and months
- 36:07Speaker 2: and months. Of course, they now put this man through
- 36:10Speaker 2: not just an arrest and a physical assault, but all
- 36:13Speaker 2: the other things that come with being charged with a felony.
- 36:17Speaker 2: So if the pattern holds, this case will run that course,
- 36:21Speaker 2: and you know, again, the Trump administration and the Department
- 36:24Speaker 2: of Justice will simply move on to its next target
- 36:27Speaker 2: because what Trump wanted will have been done.
- 36:30Speaker 1: Comy got charged, and if the charges aren't dismissed at
- 36:33Speaker 1: this early stage, Comby will have to go through with
- 36:37Speaker 1: a trial that's now scheduled for October. So six months
- 36:41Speaker 1: of going through this whole process of being charged, pre
- 36:46Speaker 1: trial motions, discovery, and then trial, and you never know
- 36:50Speaker 1: what's going to happen at trial, so it's hanging over you.
- 36:53Speaker 2: It's entirely plausible, it's happened already that the trial jury
- 36:57Speaker 2: there is one will reject the government's case. But as
- 37:00Speaker 2: you point out right, there's a lot of process and
- 37:03Speaker 2: there's a lot of cost to these things. And Trump
- 37:06Speaker 2: has said out loud in the civil context, not the
- 37:09Speaker 2: criminal the point is to make them pay, meaning to
- 37:14Speaker 2: make them suffer the financial consequences of being sued. He
- 37:19Speaker 2: doesn't care if he wins. The punishment is the suit
- 37:24Speaker 2: or the investigation. So that is wildly inappropriate, improper, a
- 37:30Speaker 2: violation of due process, and in these cases, a violation
- 37:33Speaker 2: of the First Amendment.
- 37:35Speaker 1: I'm really interested in seeing what the government will come
- 37:38Speaker 1: up with in its response papers. It's been great having
- 37:42Speaker 1: you on, Tim, Thanks so much. That's Professor Timothy Zick
- 37:46Speaker 1: of William and Mary Law School. And that's it for
- 37:49Speaker 1: this edition of the Bloomberg Law Show. Remember you can
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