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California has officially filed a lawsuit against the Trump administration over the President’s use of emergency powers to impose tariffs on major US trading partners.
Some shit you should know before you read: If you’re unaware, California is the fifth-largest economy in the world, with a GDP of roughly $3.9 trillion in 2023, surpassing that of entire nations like Germany and the United Kingdom in terms of economic output. The state’s economy is heavily intertwined with global trade, particularly through its top trading partners—China, Mexico, and Canada. China remains California’s largest single trading partner, accounting for tens of billions annually, including $19.4 billion in exports and $135 billion in imports in recent years, according to data from the California Governor’s Office of Business and Economic Development and the US Census Bureau foreign trade data.
What’s going on now: In an announcement, California Governor Gavin Newsom confirmed that the state has filed a federal lawsuit challenging President Donald Trump’s use of emergency powers to impose sweeping tariffs on key US trading partners. Filed in the US District Court for the Northern District of California, the lawsuit—brought by both Newsom and Attorney General Rob Bonta—argues that Trump has overstepped his constitutional authority by unilaterally invoking the International Economic Emergency Powers Act (IEEPA) to levy tariffs without congressional approval. The state says the law, passed in 1977, was never intended to permit the imposition of tariffs, and this interpretation violates the separation of powers and undermines federal legislative oversight.
Californian officials argue that the economic harm caused by the tariffs has disrupted critical global supply chains, inflated prices on goods, and inflicted billions of dollars in damages on the state. As the largest manufacturing and agricultural state in the US, California claims the tariffs disproportionately hurt its industries and consumers, from farmers to tech firms across the state.
Newsom’s office called the tariffs “one of the largest tax increases in U.S. history,” directly affecting Californians through higher consumer prices and job instability. Newsom added, “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs. We’re standing up for American families who can’t afford to let the chaos continue.”
So far, the Trump administration has not formally responded to the lawsuit. However, White House spokesperson Kush Desai dismissed the legal challenge, criticizing Newsom for focusing on litigation instead of state issues like crime and homelessness. Trump, for his part, has defended the tariffs as a tool to correct decades of unfair trade and claims they are generating significant revenue for the US government.
In the Governor’s announcement, he quoted some conservative figures who have criticized Trump’s tariffs. Attached are the individuals with their quotes:
US Senator Ted Cruz (R-Texas): “Listen, I love President Trump, I’m his strongest supporter, and I think he’s doing incredible things as president But here’s one thing to understand, a tariff is a tax.”
US Senator Rand Paul (R-Kentucky): “Every dollar collected in tariff revenue comes straight out of the pockets of American consumers.”
US Senator Lisa Murkowski (R-Alaska): “And if the global implications of these tariffs have shown us nothing else, it’s that measures that are as important as these should be considered by the 535 elected individuals that are in tune with the American people, rather than vesting that with just one individual acting unilaterally.”
