California Governor Gavin Newsom said the state is suing the Trump administration over the President's imposition of so-called "unlawful tariffs" on trade partners abroad.
Newsom blasted the tariffs as having caused California families, businesses, and the state economy immense disruption, noting prices and potential job loss as top concerns.
"President Trump's illegal tariffs are wreaking havoc on California families, businesses, and our economy — driving up prices and jeopardizing good jobs," Newsom said in a statement Wednesday. "We're standing up for American families who simply can't afford to let the chaos persist."
Newsom reaffirmed his stance by indicating that the Trump administration is not legally authorized to impose the tariffs, calling the scenario "destructive" and "chaotic," and upholding the state's vow to sue on them.
California, the country's most populous economy and one of the world's biggest trading partners, stands to be hit hard by the tariffs. Newsom explained how the manufacturing sector in the state and its trading relationships put it at special risk. He said that almost 40% of the goods that move through the U.S. move through California ports, and roughly 50% of that trade is linked to China.
The case will be brought before the U.S. District Court for the Northern District of California, where state officials will present their case that the International Emergency Economic Powers Act by which President Trump has slapped tariffs does not offer the requisite legal basis for such broad action.
California, the most populous U.S. state, is the first to sue the Trump administration over tariffs. The state's largest U.S. import market, the state boasts more than $675 billion of two-way trade, supporting more than a million jobs. Mexico, Canada, and China are the state's top export partners, and California shipped nearly $67 billion in exports to these nations in 2024, more than one-third of the state's total exports that year, according to the Governor's office data.
The Governor Newsom court appeal represents a significant milestone toward ongoing discussion of U.S. trade policy and the President's role in initiating economic action.
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