Newsom Takes On Trump Over Tariffs He Says Are Hurting California

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By Alexei Koseff, CalMatters

With the state budget hanging precariously in the balance, Gov. Gavin Newsom announced today that California will sue to block President Donald Trump’s tariff powers.

The lawsuit, which Newsom and Attorney General Rob Bonta plan to file in federal court this morning, argues that Trump does not have the constitutional authority to unilaterally enact tariffs. Trump cited the United States’ large trade deficit to declare a national emergency earlier this month and impose sweeping tariffs on the rest of the world.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in a statement. “We’re standing up for American families who can’t afford to let the chaos continue.”

In a matter of days in early April, Trump invoked the International Emergency Economic Powers Act of 1977 to establish a universal 10% tariff on all countries importing goods to the United States, with even higher reciprocal tariffs on some nations, then abruptly reversed course hours after they took effect, pausing most of the reciprocal tariffs while ratcheting up the import tax on China to 145%.

The chaos tanked the stock market, a huge risk for California’s forthcoming budget, which depends disproportionately on income tax revenue from capital gains earned by the wealthiest taxpayers. The state is also particularly vulnerable to other economic pain from the tariffs, because China is California’s largest trading partner, propping up manufacturing, agriculture, tourism and major ports in Los Angeles, Long Beach and Oakland.

Other major potential impacts for California include driving up the cost of construction materials just as Los Angeles begins rebuilding from a series of devastating fires that flattened several neighborhoods in January.

In their lawsuit, to be filed in the U.S. District Court in San Francisco, Newsom and Bonta will ask a judge to immediately pause Trump’s tariffs.

The state contends that the International Emergency Economic Powers Act specifies many remedies a president can take in response to a foreign economic threat, but tariffs are not among them. Without this specific authorization from Congress, the lawsuit will argue, Trump’s actions are “unlawful and unprecedented.”

“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said in a statement. “As the fifth largest economy in the world, California understands global trade policy is not just a game.”

The lawsuit continues Newsom’s shift back toward a more aggressively confrontational stance against the Trump administration. After the Los Angeles wildfires, the governor sought to reset his relationship with Trump as he lobbied for federal disaster aid.
But even though Congress has yet to approve any further assistance for Los Angeles, Newsom has begun more vocally opposing the president’s economic policies in recent weeks. In the wake of Trump’s tariffs announcement earlier this month, Newsom said California would pursue its own “strategic partnerships” on international trade.

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19 Comments

    • YIN – great info, but you’re presenting facts to a guy who calls himself an aquatic ecologist but insists that Reef Balls aren’t artificial reefs.

      Please though, by all means keep the facts coming! The rest of us do appreciate them!

  1. “As the fifth largest economy in the world, California understands global trade policy is not just a game.” …..what a hoot! Cali was failing and flailing long before the tariffs. Everyone and every state is affected by the tariff war going on right now. This really works in Gov. Newsom’s favor. He can now completely blame all of the state’s avoidable shortcomings on something else. “I dent haff nuffin’ to do whiff it!” Nice side steppin’ Gavsters. Again, what a h-o-o-t!

  2. We may be the first *state* to sue over tariffs, but it’s not the first lawsuit over these tariffs.

    “Newsom and Bonta’s argument targets the International Economic Emergency Powers Act, the law Trump is using to impose tariffs without congressional approval. The two Democrats argue Trump lacks the authority to levy tariffs under the law, mirroring a similar case filed Monday by a group of U.S. businesses.”
    https://www.politico.com/news/2025/04/16/california-is-first-state-to-sue-trump-on-tariffs-00292637

    One view of the International Emergency Economic Powers Act:
    https://www.brennancenter.org/our-work/research-reports/how-president-misusing-emergency-powers-impose-worldwide-tariffs

  3. Trump administration sued over tariffs in US Court of International Trade
    By Jack Queen
    April 14, 20256:50 PM PDTUpdated 8 days ago

    April 14 (Reuters) – A legal advocacy group on Monday asked the U.S. Court of International Trade to block President Donald Trump’s sweeping tariffs on foreign trading partners, arguing the president overstepped his authority.
    The lawsuit was filed by the nonpartisan Liberty Justice Center on behalf of five small U.S. businesses that import goods from countries targeted by the tariffs. The businesses range from a New York wine and spirits importer to a Virginia-based maker of educational kits and musical instruments.

    The lawsuit challenges Trump’s April 2 “Liberation Day” tariffs, as well as duties he separately levied against China.
    “No one person should have the power to impose taxes that have such vast global economic consequences,” Liberty Justice Center senior counsel Jeffrey Schwab said in a statement. “The Constitution gives the power to set tax rates — including tariffs — to Congress, not the President.”
    White House spokesman Harrison Fields defended Trump’s tariffs in a statement.
    “Never Trumpers will always oppose him, but President Trump is standing up for Main Street by putting an end to our trading partners — especially China — exploiting the U.S. His plan levels the playing field for businesses and workers to address our country’s national emergency of chronic trade deficits,” Fields said.

    ** The Trump administration faces a similar lawsuit in Florida federal court, where a small business owner has asked a judge to block tariffs imposed on China. **

    Trump imposed 10% tariffs on goods from all countries and higher tariffs for countries the administration says have high barriers to U.S. imports, most of which he later paused for 90 days.
    The president’s executive order invoked laws including the International Emergency Economic Powers Act, which gives presidents special powers to combat unusual or extraordinary threats to the U.S.
    In Monday’s lawsuit, the Liberty Justice Center said the law does not give presidents the authority to impose tariffs.
    “There is no precedent for using IEEPA to impose tariffs. No other President has ever done so or ever claimed the power to do so,” the lawsuit said.

    The lawsuit asks the court to block enforcement of the tariffs and declare Trump lacked the authority to impose them.
    The New York-based Court of International Trade is a U.S. federal court with broad jurisdiction over most trade-related matters.
    https://www.reuters.com/business/trump-administration-sued-over-tariffs-us-court-international-trade-2025-04-14/

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