California Governor Gavin Newsom isn’t staying silent while former President Donald Trump imposes tariffs that he claims are crippling the state’s economy. On Wednesday, Newsom, alongside Attorney General Rob Bonta, filed a lawsuit in federal court challenging Trump’s use of emergency powers to enact broad tariffs without congressional approval.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said. “We’re standing up for American families who can’t afford to let the chaos continue.”
The lawsuit argues that Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on countries like Mexico, Canada, and China is an overreach of executive authority. The IEEPA, enacted in 1977, allows the president to address national emergencies related to foreign threats, but it doesn’t explicitly grant the power to impose tariffs.
“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said. “As the fifth largest economy in the world, California understands global trade policy is not just a game.”
California, being the world’s fifth-largest economy and the largest importer among U.S. states, is feeling the brunt of these tariffs. The state’s ports handle 40% of goods imported into the U.S., and its agricultural sector, which exported $23.6 billion in 2022, is particularly vulnerable to retaliatory tariffs from other nations.
The lawsuit seeks to have the tariffs declared void and unenforceable, emphasizing that such significant economic decisions should involve Congress, not be made unilaterally by the president. Legal experts suggest that Newsom’s argument could hold weight, especially if it demonstrates that the tariffs were imposed without proper authority.
As the legal battle unfolds, other states are closely monitoring the situation, and this case could set a precedent for how trade policies are implemented in the future.
