- California Gov. Gavin Newsom is suing the Trump administration over international tariffs. He says that the tariffs will cause major damage to the state’s economy.
- The tariffs go from a 10% duty on most goods all the way up to 145% on many Chinese goods.
- It’s unknown at this time what impact the lawsuit might have on the tariffs, both in California and throughout the U.S.
Full Story
As President Donald Trump’s tariffs, and other countries’ counter-tariffs, continue to change on a seemingly daily or weekly basis, California Gov. Gavin Newsom, a Democrat, is suing the Trump administration to try to stop them in his state. California Attorney General Rob Bonta announced the challenge to Trump’s policy on the morning of Wednesday, April 16.
Newsom released a statement saying Trump’s “unlawful tariffs are wreaking chaos on California families, businesses and economy, driving up prices and threatening jobs.”
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How might tariffs affect California’s economy?
Politico reported that California is the world’s fifth-largest economy and stands to lose billions of dollars in both Silicon Valley’s tech industry and state-wide agriculture, both of which depend heavily on foreign trade. With a potential loss of international business, the state could see reduced tax revenues to fund schools and health care in the state.
The lawsuit, filed in a federal court in California, alleges that Trump unlawfully imposed tariffs that pose an immediate and irreparable harm to the state economy. The suit asked the court to declare them unlawful and bar federal agents from enforcing them in California.
Those tariffs include 10% on most foreign goods, separate tariffs on items such as steel and aluminum from Canada and Mexico and a 145% duty on many Chinese goods. Newsom went on X to proclaim that California “remains open for business.”
I’m pursuing trading relationships with our global partners to combat the pain of Trump's tariffs and exclude California-made products from retaliation.
— Governor Gavin Newsom (@CAgovernor) April 4, 2025
As the world's 5th largest economy, California remains open for business — no matter the turbulence in Washington. pic.twitter.com/c9UtoTvN10
Reaction from the White House
Forbes reports that the White House responded in a statement, saying the Trump administration remains “committed to addressing this national emergency that’s decimating America’s industries and leaving our workers behind.”
It is unclear at this point when the court might decide whether or not to halt the tariffs.
