California has launched a landmark lawsuit against the U.S. federal government, accusing the Trump administration of unlawfully using tariffs that are disrupting the Golden State's economy. Governor Gavin Newsom is seeking a court ruling to invalidate the tariffs and block their enforcement—marking the first time a state has challenged federal trade measures in court.
As the nation's top importer of goods, California's economy—worth $3.9 trillion in 2023—relies heavily on cross-border trade. In 2024, total imports and exports are approaching $675 billion, with top partners including China, Mexico and Canada. Facing higher costs and canceled orders, industries from agriculture to tech are sounding the alarm.
Almonds on the Brink
California's almond industry, which supplies over 80 percent of global demand, is bracing for major losses. With three-quarters of its crop exported, tariffs will drive up costs for buyers worldwide. Farmers warn that rising fees could force orchards to close and trigger widespread industry setbacks.
Ports and E-Commerce Feeling the Heat
The Port of Long Beach reports a drop in container traffic, with 17 ships canceling calls since April. Officials expect a 20 percent decline in throughput by mid-2025 if tariffs persist. Meanwhile, online retailers such as a Northern California e-commerce seller with tens of thousands of China-sourced items face skyrocketing import fees they can't absorb or pass on.
Governor Newsom emphasizes that these policies 'do not represent the will of the American people.' He's calling for new trade partnerships and exemptions for California-made goods to protect jobs, families and farmers from what he calls a costly trade war.
This lawsuit shines a spotlight on how domestic politics can ripple through global supply chains and why young global citizens, entrepreneurs and changemakers should watch closely as states step into the trade arena.
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Why is California launching a lawsuit against Trump tariff hikes?
cgtn.com
