Newsom says California to sue over Trump tariffs
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Gov. Gavin Newsom speaks during an announcement at the Chateau Marmont in West Hollywood on March 26. Photo: Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images
California Gov. Gavin Newsom said Wednesday that his state plans to sue in an attempt to block President Trump's sweeping tariff regime.
Why it matters: California, the fifth-largest economy in the world, could lose billions in Trump's trade war with China. The lawsuit marks the first time a state has sued Trump over his massive, market-rattling levies that sent ripples through the global economy.
Driving the news: The lawsuit will be filed Wednesday in the U.S. District Court for the Northern District of California. It argues that Trump's use of the International Economic Emergency Powers Act to impose his levies without congressional approval was unlawful.
- The law gives the president wide-ranging power in an emergency — though it has never been used to implement tariffs since its creation in 1977. The Trump admin has said the flow of drugs, undocumented immigration and trade deficits constituted national emergencies.
- Newsom said in a statement that Trump's "unlawful tariffs" are already "wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs."
- The tariffs have cost the state billions, inflated costs and disrupted supply chains, Newsom said.
What they're saying: "Californians are bracing for fallout from the impact of the President's choices — from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table — this game the President is playing has very real consequences for Californians across our state," said Rob Bonta, the state's attorney general, in a statement.
- State officials say that tariffs have an "outsized impact" on California businesses.
Zoom out: At least three other lawsuits filed over Trump's tariffs have argued Trump's justification under the emergency powers law is executive overreach, Axios' Courtenay Brown reports.
State of play: Newsom announced earlier this month that he was seeking agreements with other countries to try to insulate his state from the effects of Trump's trade war.
- California is the largest importer among the states, Newsom noted in a press release, emphasizing the importance of trade with Mexico, Canada and China.
The big picture: While Trump paused most of his sweeping "reciprocal" tariffs — other than on China — some levies remain in place.
- His administration's tariffs on Chinese goods are still set at 145%.
- The White House has signaled more tariffs, possibly on semiconductors and pharmaceuticals, are on the way.
Go deeper: California is caught in the crosshairs of an escalating trade war with China
Editor's note: This story was updated with additional context.
