California Governor Gavin Newsom filed a lawsuit against the Trump administration on Wednesday, challenging the president’s authority to impose broad tariffs that have sparked a global trade war.
The lawsuit claims that President Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada, China, and a 10% tariff on all imports is illegal. This law allows the president to freeze or block transactions in response to foreign threats, but it doesn’t give the president the power to impose tariffs, the lawsuit argues.
Filed in the U.S. District Court for the Northern District of California, the lawsuit also says that implementing such tariffs requires approval from Congress.
Trump has given various reasons for the tariffs, including boosting U.S. manufacturing and stopping the flow of illegal fentanyl into the country. California’s legal action follows frequent changes to the Trump administration’s tariff plans.
A White House official criticized the lawsuit and defended the tariff strategy.
“Instead of focusing on California’s crime, homelessness, and unaffordability, Gavin Newsom is trying to block President Trump’s efforts to address the national emergency of the country’s trade deficits,” White House spokesperson Kush Desai said. “The Trump administration is committed to addressing this issue using every tool available, including tariffs and negotiations.”
Governor Newsom, a Democrat, stated that the tariffs have led to higher prices and could cause billions of dollars in damage to California, the largest U.S. state economy and top importer. Many businesses have told state officials they will pass the tariff costs onto consumers.
The state budget could also take a big hit due to the falling stock market, as California relies heavily on income tax revenues from investments and stocks, mainly from wealthy taxpayers. The added costs from the tariffs could make it harder for the state to plan for the future and provide services, the lawsuit claims.
Gavin Newsom talks about the imposed tariffs“No state is poised to lose more than the state of California,” Newsom said at a press conference.
This lawsuit is the first time this year that Newsom has directly challenged Trump’s policies in court, despite having filed more than a dozen lawsuits against Trump’s administration in 2020. Newsom, seen as a potential presidential candidate in 2028, had softened his anti-Trump rhetoric after California sought federal aid for the deadly Los Angeles fires in January.
The lawsuit was discussed at an orchard in California’s Central Valley, a major agricultural area. Many of the state’s crops, including nuts, fruits, and vegetables, are exported globally.
Christine Gemperle, an almond farmer from Central Valley, expressed concern about her farm’s future during the trade war. Her farm has survived three droughts and the COVID-19 pandemic, but she is uncertain about the impact of the ongoing tariffs. California grows about 76% of the world’s almonds and depends on global markets for farming equipment and materials.
“Will we be able to access what we need to grow our crops, and if so, will we even be able to afford it?” Gemperle said.
California will ask the court to block the tariffs immediately.
This announcement comes after Newsom requested exemptions for California’s exports from retaliatory tariffs, but no deals have been made so far. He also launched a tourism campaign to encourage Canadian visitors to California.