Gavin Newsom angles for California exemptions to Trump trade war
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California Governor Gavin Newsom at an event in Los Angeles on March 26. Photo: Michael Buckner/Variety via Getty Images
California Gov. Gavin Newsom said Friday he is pursuing agreements with other countries to ensure California is exempted from retaliatory tariffs stemming from President Trump's escalating trade war.
Why it matters: Trump's "Liberation Day" tariffs spurred global blowback. Newsom — a reported 2028 presidential hopeful — is looking to insulate his state from the fallout.
Driving the news: "Donald Trump's tariffs do not represent all Americans," Newsom said in a video message Friday.
- California, whom he touted as "the tentpole of the U.S. economy," aims to maintain "stable trading relationships around the globe," he added.
- "I've directed my administration to look at new opportunities to expand trade and to remind our trading partners around the globe that California remains a stable partner."
- California is "ready to talk" with global trading partners, Newsom wrote on X.
- Referring to the state's economic might, Newsom added his state is "not scared to use our market power to fight back against the largest tax hike of our lifetime."
State of play: The Golden State's economy and its workers are heavily reliant on trade with Mexico, Canada and China, and retaliatory tariffs stand to have an "outsize" impact on California businesses, farmers and ranchers, according to a press release from Newsom's office.
- The tariffs could also impede the state's efforts to rebuild from this year's devastating Los Angeles wildfires, by hurting access to construction materials like timber, steel, aluminum, and the components of drywall, the press release noted.
The other side: "Gavin Newsom should focus on out-of-control homelessness, crime, regulations, and unaffordability in California instead of trying his hand at international dealmaking," White House spokesperson Kush Desai told Axios Friday.
Zoom in: Newsom is particularly concerned with retaliatory measures from other countries could impact California's agricultural sector, especially its almond industry, according to Fox News, which first reported the news of the agreements.
- California is the world's fifth-largest economy and its agricultural sector is a key economic driver for the state.
The big picture: Trump on Wednesday announced a baseline 10% tariff on U.S. imports, with steeper reciprocal levies on goods from dozens of other nations.
- Business leaders and many economists said Trump's tariffs risked raising consumer prices and reigniting inflation.
- The U.S. stock market has spiraled in the wake of Trump's plan and was poised to fall further Friday after China announced it would levy a 34% tariff on imports from the U.S.
Go deeper: A third global recession in 20 years looms
Editor's note: This story was updated with additional developments.
