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California to challenge Trump’s broad tariffs with lawsuit

Levi Farrer by Levi Farrer
April 16, 2025
in Economics
California to challenge Trump’s broad tariffs with lawsuit

FILE - This April 9, 2020, file photo shows California Gov. Gavin Newsom speaking at a news briefing at the Governor's Office of Emergency Services in Rancho Cordova, Calif. California will help skilled nursing facilities wracked by the new virus by providing additional bed space for their patients on a Navy hospital ship and shipping masks and gloves for their workers, the governor said Friday, April 10. (AP Photo/Rich Pedroncelli, Pool, File)

California Governor Gavin Newsom declared on Wednesday that his state would file a lawsuit to stop President Donald Trump from using his authority to establish extensive tariffs which have created worldwide trade disputes. The lawsuit which will be filed at the U.S. District Court for the Northern District of California contests Trump’s implementation of tariffs against Mexico, Canada and China and his proposed 10% tariff on all imported goods. The IEEPA does not grant Trump the authority to impose such measures unilaterally without Congressional approval according to Newsom’s office.

The legal action asserts that Trump exceeded his executive authority when implementing these tariffs because such significant economic policies need approval from Congress. California maintains that Trump’s tariffs break legal boundaries and endanger economic stability while Trump defends them as tools to boost U.S. manufacturing and fight illicit fentanyl trafficking. The Trump administration’s changing tariff policies have created market instability because they have disturbed trade relations between the United States and its international partners.

The global economic leadership of California faces major negative consequences from trade disruptions especially when dealing with its essential trading partners Mexico and Canada. The lawsuit demonstrates Newsom’s commitment to defend state interests because unchecked tariffs would lead to price increases for consumers and business damage and supply chain instability. Through his IEEPA invocation Trump seeks to evade congressional oversight which Newsom’s lawsuit describes as an improper exercise of presidential authority.

The case establishes a vital precedent for federal-state relationships and executive power limits in trade policy while determining presidential authority boundaries. The evolving nature of Trump’s tariffs has led California to take a legal stance against what it sees as economically damaging policies which will impact both domestic politics and international business operations.

Tags: Gavin Newsomtariffs
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