California announces lawsuit to stop President Trump from imposing sweeping tariffs

California announces lawsuit to stop President Trump from imposing sweeping tariffs 1

What to Know

  • California argues that President Donald Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and China or a 10% tariff on all imports is unlawful.
  • California Gov. Gavin Newsom says the tariffs have resulted in inflated costs and billions of dollars in damage in the nation’s most populous state.
  • California is asking the court to immediately block the Trump administration’s tariffs.

California Gov. Gavin Newsom said Wednesday that the nation’s most populous state will file a lawsuit challenging President Trump’s authority to impose sweeping tariffs that have set off a global trade war.

The suit will argue that Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and China or a 10% tariff on all imports is unlawful. The act enables a president to freeze and block transactions in response to foreign threats.

The lawsuit, which will be filed in the U.S. District Court for the Northern District of California, will also argue that enacting such tariffs requires approval from Congress, Newsom’s office said in a news release.

Trump has offered many justifications for increasing tariffs, including that they are designed to spur U.S. manufacturing and stop the flow of illicit fentanyl into the country. California’s move follows rapidly changing tariff plans by the Trump administration.

Newsom says the tariffs in effect have resulted in inflated costs and billions of dollars in damage in California, which has the largest economy among U.S. states and is a massive exporter.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” he said in a statement. “We’re standing up for American families who can’t afford to let the chaos continue.”

Newsom discussed the lawsuit alongside California Attorney General Rob Bonta later Wednesday in the farm-rich Central Valley. California is a farming powerhouse, with many of the nuts, fruits and vegetables the state grows destined for other countries.

“Mean, no rationale, no plan, no conscience, to what it’s doing to real people,” Newsom said of the tariffs. “No consideration of Congressional responsibility.

“I’m angry as a parent, as a taxpayer, as someone who has a retirement account that didn’t come from wealth. No trust funds in my family.”

Speaking at a farm in the Central Valley, Newsom said Trump has “betrayed” its residents. Trump garnered heavy support in the November election from counties in the region, including Kern, Tulare, Kings and Fresno.

‘I’m here because they’re disproportionately going to be hurt by this, by the guy that’s betrayed them,” Newsom said. “Donald Trump is betraying the people of the Central Valley. He has betrayed the people that supported him. Donald Trump has turned… his back on his supporters. We will not turn our back on those that supported Donald Trump.”

The state will ask the court to immediately block the tariffs.

The announcement comes days after Newsom asked countries to exempt California exports from retaliatory tariffs. No deals have yet been announced.