California Governor Gavin Newsom has filed a lawsuit against President Trump, challenging his authority to impose international tariffs without congressional approval. Newsom announced this legal action during a press conference, expressing concerns that Trump’s actions are damaging America’s reputation abroad. He described the tariffs as a “wrecking ball” to the nation’s global standing.
The lawsuit argues that the International Emergency Economic Powers Act, which Trump has used to justify the tariffs, does not give him the power to unilaterally impose such taxes on imported goods. This legal challenge is significant as it marks the first time a state has taken action against Trump’s trade policy.
Newsom emphasized that California stands to suffer the most from these tariffs, representing the interests of 40 million residents. He stated, “No state is poised to lose more than the state of California,” highlighting the potential economic fallout.
This lawsuit is a shift for Newsom, who has previously allowed state Attorney General Rob Bonta to lead California’s legal battles against the Trump administration. Recently, however, Newsom has become more vocal, particularly after witnessing the immediate impacts of the tariffs on California’s economy.
The tariffs, which include a 10% baseline on all imported goods and higher rates on products from Mexico, Canada, and China, could cost California billions in revenue. The state’s economy relies heavily on international trade, with nearly $675 billion in two-way trade last year. Trump’s tariffs threaten to disrupt this commerce, potentially leading to a decline in the stock market and increased job losses.
Newsom urged Congress to take action, criticizing Republican lawmakers for their inaction as Trump’s policies wreak havoc on the economy. He pointed out that the uncertainty surrounding the tariffs could lead to higher unemployment and inflation, as well as a significant budget deficit for the state.
California’s legal argument rests on the premise that only Congress has the authority to impose taxes, including tariffs. Bonta reiterated this, stating that the Constitution gives Congress control over fiscal matters, and Trump’s reliance on the International Emergency Economic Powers Act is a misuse of presidential power.
Legal experts suggest that Trump’s use of this act is questionable, as it has never been applied to tariffs before. The Trade Act, which typically governs tariff impositions, requires a more detailed process and investigation. This situation raises concerns about the legality of Trump’s actions and the potential consequences for his administration.
The lawsuit seeks to have the U.S. District Court for the Northern District of California invalidate Trump’s tariff orders. As the legal battle unfolds, it could shape the future of trade policy and the balance of power between the presidency and Congress.