West Coast business leaders challenged by California's lawsuit
Industry leaders are treading carefully as California Democrats target the Trump administration.
TroibNews 
SACRAMENTO, California – California Attorney General Rob Bonta presented himself as a guardian of the state’s robust economy on Wednesday, announcing a lawsuit that challenges President Donald Trump’s authority to implement tariffs.
The labor-focused Democrat shared with PMG that he had “direct conversations” with “quite a few folks” from business and trade organizations displeased with Trump's tariffs before initiating the nation’s first state-led suit, including representatives from the California Chamber of Commerce and the Pacific Merchant Shipping Association.
He emphasized that Trump’s erratic tariff strategies were causing significant harm to small businesses and other trade-dependent enterprises in California, threatening the viability of some.
“This is very specifically important to California,” Bonta remarked in an interview, highlighting the state’s status as the fifth-largest economy globally. “We wanted to move quickly and assertively.”
However, there was a notable lack of vocal support from business leaders following Bonta’s surprising announcement. The California Chamber of Commerce, a leading business organization in the state, chose not to comment on the lawsuit. Additionally, a prominent retail group and a coalition of business organizations, while supportive of efforts to oppose tariffs, also took the opportunity to critique what they perceive as the state’s overreaching regulatory approach.
This muted reaction showcases the precarious position that business leaders find themselves in as Bonta and Governor Gavin Newsom escalate their battle against the Trump administration with the tariff lawsuit. While there may be considerable behind-the-scenes backing for the legal action, business leaders were hesitant to align themselves publicly with Newsom and Bonta. Although Newsom maintains substantial support within California's business community, particularly in the tech sector, Bonta is not widely viewed as a strong ally. Both officials also carry the additional burden of being opponents in presidential politics.
Rachel Michelin, president of the California Retailers Association, noted that while she agrees the state needs a strategy to address the financial challenges faced by many small businesses, state leaders must also reconsider the regulations imposed on businesses while criticizing Trump.
“What they're doing to businesses is the same thing that Trump is doing to businesses as well,” Michelin stated, mentioning her own advocacy efforts in Washington, D.C., against the administration’s tariffs. “It may not be tariffs, but it's still increased costs on businesses — which ultimately leads to increased costs on consumers.”
The Goods Movement Alliance, which includes the California Business Roundtable among other groups, issued a statement that did not reference the lawsuit. Instead, it expressed support for Newsom’s emphasis on ensuring “certainty” in supply chains while also condemning state policies that they believe are harmful to business.
A spokesperson for the California Chamber of Commerce refrained from directly addressing the lawsuit, opting to release a more general statement regarding tariff policy. The cautious stance taken by this influential business advocacy group mirrors the national Chamber of Commerce’s decision not to participate in lawsuits contesting Trump’s tariffs.
Natalie Collins, president of the California Association of Winegrape Growers, remarked that the state effectively has a “self-imposed tariff” due to regulatory costs on the wine industry. She mentioned that the effects of tariffs on the domestic wine sector are complex, and the association is still evaluating their impact. However, she expressed a desire for the state to consider “rolling back outdated rules, streamlining compliance and giving our ag communities the tools they need to just stay in business and be competitive.”
“I feel that California leadership can really take a look inward about things that they can actually change,” Collins asserted.
Brian Maas, president of the California New Car Dealers Association, suggested that the lawsuit would “play itself out.” He added that the organization, which represents more than 1,200 new car dealerships in the state, is monitoring the price impacts of tariffs and awaiting manufacturer responses. He noted that car sales in the state rose more than 8 percent in the first quarter of this year compared to last year, which he attributed to consumer expectations of future price increases due to automobile tariffs.
Mike Jacob, president of the Pacific Merchant Shipping Association, which lost about half of its bookings prior to Trump halting the tariffs, expressed a more supportive view. He indicated that the group reached out to state leaders promptly after the tariffs were announced and is prepared to assist in supporting the litigation. Additionally, the shipping industry trade group is sponsoring legislation by Senate Majority Leader Lena Gonzalez to study the tariffs’ impact on California's economy.
“We want to make sure that they know that the maritime industry and their partners in goods movement are ready to provide them with support that they need for this type of defense of our infrastructure and our jobs and our economy,” Jacob stated.
He added that states heavily reliant on trade should evaluate whether the tariff policy aligns with the law and meets public policy objectives.
“We don't really know if either of those things were the case at this point,” he concluded.
Anna Muller for TROIB News
The labor-focused Democrat shared with PMG that he had “direct conversations” with “quite a few folks” from business and trade organizations displeased with Trump's tariffs before initiating the nation’s first state-led suit, including representatives from the California Chamber of Commerce and the Pacific Merchant Shipping Association.
He emphasized that Trump’s erratic tariff strategies were causing significant harm to small businesses and other trade-dependent enterprises in California, threatening the viability of some.
“This is very specifically important to California,” Bonta remarked in an interview, highlighting the state’s status as the fifth-largest economy globally. “We wanted to move quickly and assertively.”
However, there was a notable lack of vocal support from business leaders following Bonta’s surprising announcement. The California Chamber of Commerce, a leading business organization in the state, chose not to comment on the lawsuit. Additionally, a prominent retail group and a coalition of business organizations, while supportive of efforts to oppose tariffs, also took the opportunity to critique what they perceive as the state’s overreaching regulatory approach.
This muted reaction showcases the precarious position that business leaders find themselves in as Bonta and Governor Gavin Newsom escalate their battle against the Trump administration with the tariff lawsuit. While there may be considerable behind-the-scenes backing for the legal action, business leaders were hesitant to align themselves publicly with Newsom and Bonta. Although Newsom maintains substantial support within California's business community, particularly in the tech sector, Bonta is not widely viewed as a strong ally. Both officials also carry the additional burden of being opponents in presidential politics.
Rachel Michelin, president of the California Retailers Association, noted that while she agrees the state needs a strategy to address the financial challenges faced by many small businesses, state leaders must also reconsider the regulations imposed on businesses while criticizing Trump.
“What they're doing to businesses is the same thing that Trump is doing to businesses as well,” Michelin stated, mentioning her own advocacy efforts in Washington, D.C., against the administration’s tariffs. “It may not be tariffs, but it's still increased costs on businesses — which ultimately leads to increased costs on consumers.”
The Goods Movement Alliance, which includes the California Business Roundtable among other groups, issued a statement that did not reference the lawsuit. Instead, it expressed support for Newsom’s emphasis on ensuring “certainty” in supply chains while also condemning state policies that they believe are harmful to business.
A spokesperson for the California Chamber of Commerce refrained from directly addressing the lawsuit, opting to release a more general statement regarding tariff policy. The cautious stance taken by this influential business advocacy group mirrors the national Chamber of Commerce’s decision not to participate in lawsuits contesting Trump’s tariffs.
Natalie Collins, president of the California Association of Winegrape Growers, remarked that the state effectively has a “self-imposed tariff” due to regulatory costs on the wine industry. She mentioned that the effects of tariffs on the domestic wine sector are complex, and the association is still evaluating their impact. However, she expressed a desire for the state to consider “rolling back outdated rules, streamlining compliance and giving our ag communities the tools they need to just stay in business and be competitive.”
“I feel that California leadership can really take a look inward about things that they can actually change,” Collins asserted.
Brian Maas, president of the California New Car Dealers Association, suggested that the lawsuit would “play itself out.” He added that the organization, which represents more than 1,200 new car dealerships in the state, is monitoring the price impacts of tariffs and awaiting manufacturer responses. He noted that car sales in the state rose more than 8 percent in the first quarter of this year compared to last year, which he attributed to consumer expectations of future price increases due to automobile tariffs.
Mike Jacob, president of the Pacific Merchant Shipping Association, which lost about half of its bookings prior to Trump halting the tariffs, expressed a more supportive view. He indicated that the group reached out to state leaders promptly after the tariffs were announced and is prepared to assist in supporting the litigation. Additionally, the shipping industry trade group is sponsoring legislation by Senate Majority Leader Lena Gonzalez to study the tariffs’ impact on California's economy.
“We want to make sure that they know that the maritime industry and their partners in goods movement are ready to provide them with support that they need for this type of defense of our infrastructure and our jobs and our economy,” Jacob stated.
He added that states heavily reliant on trade should evaluate whether the tariff policy aligns with the law and meets public policy objectives.
“We don't really know if either of those things were the case at this point,” he concluded.
Anna Muller for TROIB News
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