U.S. Treasury Secretary Scott Bessent emphasized on the 2nd (local time) that China's rare earth export controls and the export of fentanyl precursors constitute an "emergency situation" that justifies the imposition of tariffs, ahead of a Supreme Court hearing on the legality of tariffs imposed by the Trump administration.

Speaking on CNN, Bessent stated, "China's actions on October 8th, specifically the threat to control rare earth exports, which could slow down or halt the manufacturing systems of Western countries, itself constitutes an emergency situation (for imposing tariffs)." He argued, "The President, by threatening 100% tariffs under the IEEPA (International Emergency Economic Powers Act), compelled China to delay those actions."

Bessent added, "Looking back to last spring, the President imposed a 20% tariff on Chinese fentanyl, and that brought China to the negotiating table. China became serious about stopping the flow of fentanyl precursors into North America, which were causing hundreds of thousands of American deaths annually, (because of the tariffs)."

He rhetorically asked, "If that (rare earth export control) is not an emergency, what is?" and "If fentanyl deaths are not an emergency, what is?" He concluded, "(President Trump) is using his authority under emergency laws, and all of this is a clear emergency."

The U.S. Supreme Court will hold oral arguments on the 5th regarding lawsuits challenging various tariffs imposed by President Trump based on the IEEPA. The IEEPA, enacted in 1977, grants the president several powers to respond to a "national emergency," one of which is the authority to "regulate" imports.

On April 2nd, President Trump declared a national emergency, citing the chronic and massive U.S. trade deficit as a significant threat to national security and the economy, and announced he would impose "reciprocal tariffs" on a country-by-country basis under the IEEPA. Bessent argued that China's rare earth export controls and the export of precursors, which are fentanyl raw materials, fall under this emergency situation.

Regarding criticism that tariffs are being used as an emotional and political tool for retaliation, unrelated to their original purpose, Bessent addressed the Trump administration's announcement of a 10% tariff increase in response to a "Say No to Tariffs" TV advertisement in Ontario, Canada, last month. He countered, "This is no different from election interference," adding, "We have not actually imposed the 10% tariff yet."

He then sarcastically remarked, "The Premier of Ontario should be ashamed," and "He's probably still sore about the Blue Jays' loss last night." The Toronto Blue Jays, part of Ontario, lost to the Los Angeles Dodgers in an extra-inning game in the Major League Baseball (MLB) World Series held the previous day, dashing their hopes for a World Series championship.

U.S. Treasury Secretary Scott Bessent (left) attending APEC. AFP Yonhap News. Yonhap News