California files lawsuit against Trump administration for 'unlawful tariffs'
California Governor Gavin Newsom announced on Wednesday that the state, which boasts the largest economy in the nation, is filing a lawsuit against the Trump administration over the president's extensive "unlawful tariffs" imposed on international...
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California Governor Gavin Newsom announced on Wednesday that the state, which boasts the largest economy in the nation, is filing a lawsuit against the Trump administration over the president's extensive "unlawful tariffs" imposed on international trading partners.
"President Trump's unlawful tariffs are wreaking chaos on California families, businesses, and our economy – driving up prices and threatening jobs," Newsom stated. "We're standing up for American families who can't afford to let the chaos continue."
In a post on X, he added, "Donald Trump does not have the authority to impose these destructive and chaotic tariffs. America stands to lose too much. We're taking him to court."
California is the first state in the nation to take legal action against the Trump administration concerning tariffs.
The lawsuit, which is expected to be filed in the U.S. District Court for the Northern District of California, will contend that the International Emergency Economic Powers Act, cited by Trump to implement the tariffs, does not provide him with the power to impose these tariffs unilaterally.
"California is the largest manufacturing state in our union, one of the largest trading partners around the globe. No state will be impacted more than the state of California as it relates to the unilateral authority that's been asserted by the Trump administration to impose the largest tax increases in modern American history," Newsom remarked.
He emphasized that "in America, forty percent of goods movements in this country come through two ports of entry in California. About 50 percent of that from China itself."
The Golden State serves as the largest importer in the U.S., with over $675 billion in two-way trade that supports millions of jobs. California’s top three export destinations—Mexico, Canada, and China—account for nearly $67 billion in 2024, which represents more than one-third of the state’s total $183 billion in exported goods, according to data from the governor's office.
Additionally, the World Trade Organization issued a warning on Wednesday, indicating that the outlook for global trade has "deteriorated sharply" due to Trump's tariffs.
Current predictions suggest that trade volume is set to decline by 0.2 percent in 2025, with a "modest" recovery of 2.5 percent expected in 2026, factoring in the existing tariffs and a 90-day suspension of "reciprocal tariffs."
The decline is projected to be particularly pronounced in North America, where exports are anticipated to decrease by 12.6 percent this year.
James del Carmen contributed to this article for TROIB News
"President Trump's unlawful tariffs are wreaking chaos on California families, businesses, and our economy – driving up prices and threatening jobs," Newsom stated. "We're standing up for American families who can't afford to let the chaos continue."
In a post on X, he added, "Donald Trump does not have the authority to impose these destructive and chaotic tariffs. America stands to lose too much. We're taking him to court."
California is the first state in the nation to take legal action against the Trump administration concerning tariffs.
The lawsuit, which is expected to be filed in the U.S. District Court for the Northern District of California, will contend that the International Emergency Economic Powers Act, cited by Trump to implement the tariffs, does not provide him with the power to impose these tariffs unilaterally.
"California is the largest manufacturing state in our union, one of the largest trading partners around the globe. No state will be impacted more than the state of California as it relates to the unilateral authority that's been asserted by the Trump administration to impose the largest tax increases in modern American history," Newsom remarked.
He emphasized that "in America, forty percent of goods movements in this country come through two ports of entry in California. About 50 percent of that from China itself."
The Golden State serves as the largest importer in the U.S., with over $675 billion in two-way trade that supports millions of jobs. California’s top three export destinations—Mexico, Canada, and China—account for nearly $67 billion in 2024, which represents more than one-third of the state’s total $183 billion in exported goods, according to data from the governor's office.
Additionally, the World Trade Organization issued a warning on Wednesday, indicating that the outlook for global trade has "deteriorated sharply" due to Trump's tariffs.
Current predictions suggest that trade volume is set to decline by 0.2 percent in 2025, with a "modest" recovery of 2.5 percent expected in 2026, factoring in the existing tariffs and a 90-day suspension of "reciprocal tariffs."
The decline is projected to be particularly pronounced in North America, where exports are anticipated to decrease by 12.6 percent this year.
James del Carmen contributed to this article for TROIB News
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