Two recent federal court rulings offering a reprieve from Trump-era tariffs have brought relief—but the damage to small businesses is already severe, warns California Governor Gavin Newsom.
"This has already had an impact, and the impact would be even more acute as it relates to shortages and supply constraints that are inevitable if this continues," Newsom said on the MeidasTouch Network podcast.
After meeting with more than a dozen entrepreneurs across California, Newsom heard accounts of "complete devastation." One baby-products retailer faces losing her home. A family-run electric bike shop, despite a full container of inventory, can't afford the levies and may be forced to close.
U.S. District Judge Rudolph Contreras ruled that President Trump lacked authority to impose tariffs on two Illinois toy importers. Less than 24 hours earlier, the U.S. Court of International Trade blocked another set of "reciprocal" tariffs, saying emergency powers couldn't enforce them. The U.S. Court of Appeals for the Federal Circuit later stayed the Trade Court's decision, temporarily reinstating the levies. Contreras then paused his own ruling for 14 days to allow for an appeal.
"California was the first to sue Trump over these unlawful tariffs, and now the courts are saying exactly what we argued from day one," Newsom noted. Families nationwide have felt the cost of an ego-driven trade war: canceled shipments, layoffs, business closures—and, in some cases, parents losing their homes.
As litigation continues, small business owners in California—and beyond—are watching closely, hoping these legal setbacks turn into long-term relief from unpredictable trade policies that ripple across global supply chains.
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Small businesses devastated by Trump's tariffs: California governor
cgtn.com
