California, the fifth-largest economy globally, is taking legal action against President Donald Trump over his imposition of tariffs on various goods from countries like China, Canada, and Mexico. Governor Gavin Newsom and Attorney General Rob Bonta argue that Trump's actions are unconstitutional, exceeding his authority and harming California's economy which is heavily reliant on trade with these countries. They claim the tariffs are causing economic uncertainty, rising prices, business failures, and job losses.
The state contends that Trump's protectionist policies, aimed at boosting domestic manufacturing, are instead damaging the American economy. Newsom accuses Trump of "betrayal," highlighting the negative impact on farmers, a key demographic of Trump's support base, and the damage to Americans' retirement savings due to market downturns.
Newsom announced California's intention to pursue agreements with other nations to mitigate the effects of potential retaliatory tariffs. The lawsuit is the fifteenth filed by California against the Trump administration, stemming from concerns about presidential authority and economic policies.
The lawsuit challenges Trump's use of a 1977 law to impose tariffs, arguing that only Congress has the constitutional power to do so. The White House strongly criticized the lawsuit, accusing Newsom of prioritizing political grandstanding over addressing issues within California. The White House spokesperson, Karoline Leavitt, stated that Newsom should focus on state issues like crime, homelessness, and high cost of living, instead of interfering with Trump's efforts to address trade deficits.