In an unprecedented legal move, California is taking a stand against what it calls the Trump administration's sweeping tariffs. Governor Gavin Newsom contends that these measures, imposed under the International Emergency Economic Powers Act, are driving up prices, destabilizing local businesses, and putting jobs at risk.
"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 taking him to court."
The lawsuit, set to be filed in the U.S. District Court for the Northern District of California, challenges the claim that the cited law grants unilateral authority to impose such substantial tariffs. As the nation’s largest economy and a major manufacturing hub, California is uniquely vulnerable. Nearly 40% of the state’s goods movement flows through its key ports, with a significant portion originating from the Chinese mainland.
Trade is essential to California’s prosperity. With more than $675 billion in two-way trade supporting millions of jobs, the state’s exports play a pivotal role in its economy. In 2024, top trading partners—including Mexico, Canada, and the Chinese mainland—accounted for nearly $67 billion in exports, a substantial part of the state’s overall $183 billion in trade.
On a global scale, the World Trade Organization has warned of a sharp deterioration in global trade outlook. Forecasts suggest a 0.2% decline in world merchandise trade for 2025 and a modest recovery of 2.5% by 2026, with North American exports predicted to drop by 12.6% this year.
This legal battle not only underscores California’s economic clout but also illuminates the broader challenges of aligning domestic policy with international trade dynamics. As global citizens and change-makers watch closely, the outcome of this case could have far-reaching implications for both local and international trade policies.
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California sues Trump administration over 'unlawful tariffs'
cgtn.com
