California's Newsom Says State To Sue Over Trump's Tariffs

Bloomberg

2025/04/16

California Governor Gavin Newsom said his state is suing to halt Donald Trump’s tariffs, setting up a high-stakes legal challenge to the president’s landmark effort to overhaul global trade.The state ...

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Officials cited harm to consumers and businesses in the world’s fifth-largest economy.Newsom, a Democrat who’s considered a likely candidate to run for president in 2028, and California Attorney General Rob Bonta will seek a court order to immediately block the levies. “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in the statement.Gavin Newsom, governor of CaliforniaPhotographer: Kyle Grillot/BloombergRepresentatives for the White House didn’t immediately respond to an emailed request for comment on California’s challenge.Trump’s unprecedented use of the International Emergency Economic Powers Act, or IEEPA, to impose tariffs on imports has rattled markets, prompted forecasts of a potential recession and strained relationships with overseas trading partners.The IEEPA, passed in 1977, gives the president broad authority to regulate certain financial transactions when declaring a national emergency in response to an “unusual and extraordinary threat.” It has traditionally been used to place sanctions on countries, companies and individuals.Trump became the first president to use the statute to impose tariffs when he announced levies in February against China, Mexico and Canada to respond to the “extraordinary threat” of undocumented immigrants and illegal drugs moving through US borders.The president is already facing at least three legal challenges to his tariffs, though major industries caught in the tariff crossfire have held off from any legal action for now. Two complaints were filed by conservative legal advocacy groups on behalf of small businesses, and the third by members of the Blackfeet Nation in Montana.Justice Department lawyers have argued that all the cases filed so far should be handled by the Court of International Trade in Washington, which specializes in lawsuits against the government over trade issues, and are seeking to transfer cases filed in US district courts to the trade court.California EconomyCalifornia, a reliably Democratic state, has already challenged an executive order Trump issued to end birthright citizenship and the freeze on federal grants and loans.Newsom during his governorship has positioned himself as a national voice on issues from climate change to abortion rights. His second term ends in 2026, leading to speculation he will run for president.California accounts for roughly 14% of the nation’s gross domestic product, has a 40 million population and would be considered one of the largest economies in the world if it were a standalone country. Newsom has said that its economic weight gives California leverage on the global stage, but it also makes it vulnerable to tariffs.The state plays a crucial role in agriculture and US manufacturing, including semiconductors, computer equipment and vehicles. It exported $24 billion in agricultural goods in 2022, nearly 13% of total US farm exports. Almonds were the biggest contributor at $4.7 billion, followed by dairy products, pistachios and wine, with top buyers including Canada, the European Union, China and Hong Kong.Newsom has previously said he would try and insulate the state from Trump’s tariff plan by going directly to global trading partners and seeking exemptions, even though its unclear how he could pursue international agreements with foreign partners.California plans to allege, like the previous suits, that the IEEPA doesn’t give Trump authority to impose tariffs and that his actions violate the law absent congressional approval, according to the statement from Newsom’s office.Newsom and Bonta said the tariffs have an outsized impact on California businesses, including its more than 60,000 small business exporters.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}