California Sues Trump Administration Over “Unlawful” Tariffs
California Governor Gavin Newsom has announced a lawsuit against the Trump administration over what he described as “unlawful tariffs” that are severely impacting the state’s economy. The legal action makes California the first U.S. state to challenge the sweeping tariffs in court.
In a statement on Wednesday, Newsom said, “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy—driving up prices and threatening jobs. We’re standing up for American families who can’t afford to let the chaos continue.”
Taking to social media platform X, the Governor emphasized that former President Trump lacks the legal authority to impose what he called “the largest tax increases in modern American history” through these tariffs. “Donald Trump does not have the authority to impose these destructive and chaotic tariffs. We’re taking him to court,” Newsom declared.
California, the nation’s largest manufacturing and trading state, is expected to bear a disproportionate share of the economic burden resulting from the tariffs. “No state will be impacted more than California,” said Newsom, pointing out that 40% of all U.S. goods movement passes through two major Californian ports, with about half of that trade involving China.
The lawsuit, to be filed in the U.S. District Court for the Northern District of California, challenges the Trump administration’s interpretation of the International Emergency Economic Powers Act (IEEPA)—a law the administration cited as justification for the tariffs. California officials argue that the law does not grant the President unilateral authority to impose such broad economic measures.
According to the Governor’s office, California is the largest importer among U.S. states, with over $675 billion in two-way trade supporting millions of jobs. In 2024 alone, California exported $183 billion in goods, with Mexico, Canada, and China accounting for nearly $67 billion of those exports.
Newsom’s legal challenge underscores the economic and political tensions between state and federal authorities over trade policy, as well as the broader implications of unilateral tariff decisions on local economies.
