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California Governor Works Overtime to Bypass Trump’s America-First Tariffs [WATCH]

California Governor Gavin Newsom announced Friday that he has directed state officials to pursue direct trade agreements with foreign governments in an effort to protect California-based industries from retaliation prompted by President Donald Trump’s newly announced tariffs.

Newsom’s statement follows the rollout of what the White House has labeled “Liberation Day” tariffs — a broad package of reciprocal import duties unveiled Wednesday that targets multiple countries, including China, the European Union, South Korea, and India.

Sept 15, 2020; Auberry, CA, USA; California Governor Gavin Newsom talks to the media at Pine Ridge School in Auberry, CA on Tuesday, Sept. 15, 2020. The playground set in the background was damaged by the Creek Fire. Mandatory Credit: Ron Holman/Visalia Times-Delta via USA TODAY NETWORK

These measures are part of the Trump administration’s latest strategy to address what it calls decades of unfair trade practices that have harmed American manufacturing and workers.

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In a press release issued by his office, Newsom said he is instructing California’s trade representatives to establish independent dialogues with foreign governments, asking them to exclude California-manufactured goods from retaliatory tariffs. He also emphasized the state’s economic stature in the global economy.

“Donald Trump’s tariffs do not represent all Americans, particularly those that I represent here in the fifth-largest economy world: the state of California. We value international trade. We value our manufacturing base — the largest manufacturing economy in the United States of America … I remind all of our international trading partners: California is stable trading partner, and we hope you consider that as it relates to California-made products.”

Newsom described the new federal tariff policy as “the largest tax hike in our lifetime” and said that California is open to discussions with international trade partners to mitigate potential economic fallout at the state level.

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President Trump, in remarks delivered Thursday, defended the tariff package as essential to reviving the nation’s manufacturing base and addressing the long-term consequences of global trade deals such as NAFTA.

“This was a patient that was very sick,” Trump said. “We’ve lost 90,000 plants since NAFTA, and about 6 million jobs. It was a sick patient. It went through an operation on Liberation Day. And it’s going to be a booming country.”

Several nations affected by the new tariffs have already announced retaliatory measures. China said it would implement a 34% tariff on all American-made goods. Canada responded with a 25% tariff on U.S. vehicle imports, stating the move was intended to “develop a framework for auto producers that incentivizes production and investment in Canada.”

Despite the international backlash, some U.S.-based labor groups have praised the tariffs. Shawn Fain, president of the United Auto Workers, spoke in support of the new policy during an appearance on CBS News’ Face the Nation.

“Tariffs are a tool in the toolbox to get these companies to do the right thing, and the intent behind it is to bring jobs back here,” Fain said. “There’s two parts to the tariffs though … We have to fix the broken trade laws. And the other thing to me is … they got to be good paying union jobs that set standards.”

Financial markets responded to the developments with steep losses. The Dow Jones Industrial Average dropped 2,200 points on Friday, a decline of 5.5%. The Nasdaq fell by 5.6%, and the S&P 500 saw a decrease of 5.8%.

The White House has not issued a formal response to Newsom’s efforts to conduct state-level trade negotiations.

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