Trump’s Tariffs Could Wreck California’s Economy. The State Is Suing

Updated 1:05 p.m. Wednesday

California is challenging President Donald Trump’s tariffs in court, arguing in a lawsuit filed Wednesday morning that he lacks the authority to unilaterally impose the levies on foreign goods and that they are doing irreparable harm to the state’s economy.

Gov. Gavin Newsom and Attorney General Rob Bonta are asking a federal court to pause the tariffs being levied against Mexico, China and Canada, as well as the across-the-board 10% tariff enacted by Trump. The suit argues that the law the president is relying on — the International Economic Emergency Powers Act — has never been used before to justify tariffs, and that Trump needs Congressional authorization for actions with such broad economic consequences.

Newsom and Bonta announced the lawsuit at Gemperle Orchards, a family-owned almond farm in Stanislaus County. Newsom called the tariffs a regressive sales tax that is hurting both businesses and consumers — including Trump’s own supporters.

He said California, the largest manufacturing state in the nation, has a responsibility to use its economic and political might to push back against the tariffs.

“Eighty years of economic dominance in just a matter of weeks being unwound by this kind of recklessness,” Newsom said. “We are very mindful of the anxiety that this has imposed on all of you and very mindful of our role and responsibility at this moment not to be bystanders and to try to shape this debate and shape this conversation.”

White House spokesperson Kush Desai defended the tariffs in a statement and slammed Newsom.

“Instead of focusing on California’s rampant crime, homelessness and unaffordability, Gavin Newsom is spending his time trying to block President Trump’s historic efforts to finally address the national emergency of our country’s persistent goods trade deficits,” he said. “The entire Trump administration remains committed to addressing this national emergency that’s decimating America’s industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations.”

The lawsuit cites the U.S. Supreme Court’s “major questions doctrine,” a legal principle that assumes Congress must weigh in on issues of major political or economic significance. The Supreme Court relied on the doctrine to strike down laws related to pollution control and student loan forgiveness under Presidents Joe Biden and Barack Obama, the governor noted.

“If they are consistent, then this lawsuit is a lock in terms of what the Attorney General has laid out and what this state is asserting,” Newsom said.

The governor’s office said the tariffs have already cost California billions of dollars in economic losses. Bonta said the state’s largest sectors — particularly manufacturing and agriculture — are being hurt by the tariffs, along with consumers.

He noted that Mexico, Canada and China are California’s top trade partners.

“Trump’s rogue and erratic tariffs are wreaking havoc … and causing unique harm to the California economy, the fifth largest in the world and a major driver of the national economy,” Bonta said. “Trump does not have the authority to impose these tariffs. He must be stopped.”

Christine Gemperle, owner of the almond farm where the news conference took place, said she’s not sure if her business will still be able to afford the farm equipment and other supplies they need to grow their crops.

“Because seasons determine when crops are planted and harvested, we do not have the luxury to wait years for factories to be built or supply chains to grow,” she said. “Regardless of all the scientific and engineering advances, farming is still hard work. And the weather makes every year a gamble. The last thing we need is more uncertainty, and not knowing whether we can ride this one out.”

The suit, and Newsom’s strident comments — at one point he accused Trump of “corruption” — mark a departure from the governor’s less aggressive posturing this year. For months, Newsom has avoided directly criticizing Trump as California seeks federal emergency assistance to help recover from the devastating Los Angeles wildfires. However, in recent weeks, the governor has been vocal about his desire to protect California’s economy from Trump’s tariffs.

The lawsuit is California’s 14th against the Trump administration since January. Democratic Assembly Speaker Robert Rivas noted in a statement that lawmakers approved a $50 million legal defense fund earlier this year to push back against the Trump administration in court. Half of the fund was earmarked for the state Department of Justice, led by Bonta.

“Trump’s tariffs are the single largest tax increase in our lifetime, and they’re jamming Californians with higher prices on groceries, medicine and cars,” Rivas said. “This is why we enacted a legal defense fund: to fight Republican policies that harm taxpayers. We’re protecting our residents — and all American families — from unlawful economic chaos.”

Newsom said that fund was created as an insurance policy that he would prefer not to use.

“We didn’t want to go down this path. We were hoping we didn’t need to go down this path, but we prepared to go down this path,” he said of the legal challenges to Trump’s policies.