ECONOMY
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California Sues to Block Trump's Tariff Policy

TRUEGOV NEWS2 months ago
California Sues to Block Trump's Tariff Policy

Newsom claims state will be disproportionately impacted by new trade measures

1.

California has initiated legal action against President Donald Trump's administration over recently imposed tariffs, becoming the first U.S. state to file such a lawsuit. Governor Gavin Newsom and Attorney General Rob Bonta announced the legal challenge, which will be filed in the U.S. District Court for the Northern District of California. The lawsuit contends that the president's use of the International Emergency Economic Powers Act to implement these tariffs exceeds executive authority and requires congressional approval.

2.

The legal challenge specifically targets tariffs imposed on Mexico, Canada, and China, as well as a 10% tariff on all imports. California officials argue that the state's economy, the largest among U.S. states, faces disproportionate harm from these trade measures. According to Newsom, vendors have already warned that tariff costs will be passed on to the state, resulting in inflated prices and potentially billions in economic damage to California's economy.

KEY POINTS

  • California files first state lawsuit on tariffs
  • Lawsuit claims Trump exceeded authority
  • Newsom: No state will lose more than CA
3.

President Trump's administration has provided various justifications for the tariff increases, including stimulating domestic manufacturing and combating the flow of illicit fentanyl into the United States. The administration recently imposed steep reciprocal tariffs on dozens of countries before pausing most for 90 days, while maintaining a 10% tariff on most imported goods and increasing levies on Chinese imports to 145% total.

4.

The lawsuit represents the 14th legal challenge California has filed against the Trump administration in less than 14 weeks. In addition to the lawsuit, Governor Newsom has separately approached foreign countries requesting exemptions for California exports from retaliatory tariffs, though no agreements have been reached. The state is seeking an immediate court injunction to block the implementation of the tariffs while the case proceeds.

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California Sues to Block Trump's Tariff Policy