California Governor Gavin Newsom announced Tuesday that the state will file a lawsuit against President Donald Trump over the administration’s newly implemented tariff policies, escalating tensions between the White House and the nation’s most populous state.
The lawsuit, which will be filed in the U.S. District Court for the Northern District of California, challenges the legality of President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose a new round of tariffs on a range of imports.
Newsom claims the tariffs violate the U.S. Constitution and are inflicting economic harm on California residents and businesses.
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“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in a statement.
“We’re standing up for American families who can’t afford to let the chaos continue.”
President Trump has no authority to unilaterally impose his disastrous tariff agenda.
These reckless tariffs have created economic chaos, skyrocketing everyday costs and inflicting billions in damages on the state, families, and businesses.
We will be taking this to court. pic.twitter.com/wFCQ6TPXZt
— Governor Gavin Newsom (@CAgovernor) April 16, 2025
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The IEEPA, signed into law in 1977 under President Jimmy Carter, gives the president authority to regulate commerce in response to an “unusual and extraordinary threat” from outside the United States.
President Trump invoked the law to introduce a baseline 10% tariff on all imports effective April 5, 2025, as well as a significant increase in tariffs on certain nations, including China.
On April 2, speaking from the White House Rose Garden, President Trump declared the date as “Liberation Day,” stating the tariffs mark the beginning of a new era of economic independence.
He emphasized that the policy is intended to protect American jobs, reduce dependence on foreign manufacturing, and secure long-term stability for the U.S. economy.
“This is about fairness and the future,” Trump said during the announcement.
“American workers have been put last for too long, and those days are over.”
As part of the new trade policy, Trump raised tariffs on Chinese imports to 125% and provided a 90-day temporary pause and tariff reduction to 10% for over 75 countries, according to a statement posted on Truth Social.
He cited China’s “lack of respect for the World’s Markets” as justification for the aggressive hike.
Governor Newsom’s lawsuit will reportedly seek a temporary injunction to halt the tariffs while the court considers the case.
Legal observers expect the case to receive national attention, particularly given the broader implications for presidential authority under the IEEPA.
This is the first time a state has filed a lawsuit specifically targeting the president’s use of emergency powers to impose tariffs.
The move signals a significant legal and political challenge to the administration’s trade agenda from within the United States.
California has deep economic ties to international trade, with significant import and export activity through its ports and major manufacturing sectors.
The Newsom administration contends that the state stands to lose billions in trade revenue and jobs if the tariffs remain in effect.
KTLA reported that Newsom had previously sought exemptions from certain tariffs for California counties but was unsuccessful.
President Trump’s trade actions have sparked mixed reactions nationwide, with supporters arguing that the tariffs are a necessary corrective to decades of trade imbalances and critics warning of inflationary impacts and trade retaliation.
As of now, the White House has not issued a formal response to the lawsuit announcement.
The legal filing is expected to be submitted later this week.
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