California governor Gavin Newsom has announced that his condition will file a process to stop Donald Trump’s fares, preparing a legal battle in the US president’s emblematic effort to reform global trade.
The state will file a complaint on Wednesday (16) at the Federal Court of San Francisco, contesting the use of Emergency Powers by Trump to impose broad tariffs against Mexico, China and Canada, according to a statement issued by the Newsom office. Authorities cited damage to consumers and companies in the fifth largest economy in the world.
Newsom, a democrat considered a likely presidential candidate in 2028, and California Attorney General Rob Bonta will seek a court order to immediately block the rates. “President Trump’s illegal tariffs are causing chaos in California families, companies and our economy – raising prices and threatening jobs,” Newsom said in the statement.
White House representatives did not immediately respond to an email request to comment on the California process.
Trump’s unprecedented use of the International Emergency Economic Powers Law (IEEPA) to impose tariffs on imports shook markets, generated predictions of possible recession and tensioned relations with trade partners abroad.
IEEPA, approved in 1977, gives the President a wide authority to regulate certain financial transactions by declaring a national emergency in response to an “unusual and extraordinary threat”. Traditionally, it has been used to impose sanctions on countries, companies and individuals.
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Trump became the first president to use this law to impose tariffs by announcing tariffs against China, Mexico and Canada in response to the “extraordinary threat” of indocmented immigrants and illegal drugs that cross US borders.
The president already faces at least three legal challenges to his rates, although large industries affected by the tariff conflict have abstained from any legal action for now. Two complaints were filed by conservative legal defense groups on behalf of small businesses, and the third by members of the Blackfeet nation in Montana.
The Justice Department’s lawyers have argued that all cases presented so far should be dealt with by the International Court of Commerce in Washington, which specializes in lawsuits against the government related to commercial issues, and are seeking to transfer cases presented in US District Courts to the Court of Commerce.
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California Economy
California, a traditionally democratic state, has already contested an executive order issued by Trump to end citizenship by birth right and the suspension of federal subsidies and loans.
During his government, Newsom positioned himself as a national voice on issues ranging from climate change to abortion rights. His second term ends in 2026, leading to speculation that he will apply to the presidency.
California represents about 14% of the country’s Gross Domestic Product (GDP), has a population of 40 million people and would be considered one of the largest economies in the world if it were an independent country. Newsom stated that California’s economic weight gives him an influence on the global scenario, but also makes it vulnerable to tariffs.
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The state plays a crucial role in US agriculture and manufacturing, including semiconductors, computer equipment and vehicles. By 2022, it exported US $ 24 billion in agricultural products, almost 13% of the total of US agricultural exports. Almonds were the largest contributor, with US $ 4.7 billion, followed by dairy products, pistachios and wine, with the main buyers including Canada, European Union, China and Hong Kong.
Newsom has said earlier that he would try to protect the state from Trump’s tariff plan going directly to global business partners and seeking exemptions, although it is unclear how he could seek international agreements with foreign partners.
California plans to claim, as well as in previous actions, that IEEPA does not give Trump authority to impose tariffs and that its actions violate the law in the absence of congressional approval, according to the news statement.
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Newsom and Bonta stated that tariffs have a disproportionate impact on California companies, including their more than 60,000 small exporting companies.
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