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Updated April 4th 2025, 20:54 IST

Newsom Defies Trump’s Trade War, Seeks Global Deals for California

One of Newsom’s biggest concerns is how retaliatory tariffs will affect California’s agricultural industry.

Reported by: Sagar Kar
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California Governor Gavin Newsom
California Governor Gavin Newsom | Image: AP

California Governor Gavin Newsom announced on Friday that he is working to secure agreements with other countries to exempt California from retaliatory tariffs imposed in response to President Donald Trump’s sweeping trade measures.

Trump’s recently announced “Liberation Day” tariffs have triggered backlash from trading partners worldwide, leading to retaliatory tariffs that could impact American businesses. Newsom, who is widely considered a potential 2028 presidential candidate, is moving to protect California’s economy—one of the largest in the world—from the fallout.

Newsom’s Position

“Donald Trump’s tariffs do not represent all Americans,” Newsom said in a video message on Friday. He described California as the “tentpole of the U.S. economy” and emphasized the state's commitment to maintaining strong international trade relationships.

“I've directed my administration to look at new opportunities to expand trade and to remind our trading partners around the globe that California remains a stable partner,” Newsom added.

Concerns Over Agriculture and Trade

One of Newsom’s biggest concerns is how retaliatory tariffs will affect California’s agricultural industry, particularly its almond sector. California produces over 80% of the world's almonds, making it highly vulnerable to trade restrictions.

The state, which boasts the fifth-largest economy in the world, relies heavily on international trade, and sudden tariff hikes could have far-reaching consequences for farmers and exporters.

White House Pushes back

Newsom’s move has drawn criticism from the White House.

“Gavin Newsom should focus on out-of-control homelessness, crime, regulations, and unaffordability in California instead of trying his hand at international dealmaking,” said White House spokesperson Kush Desai in a statement, as per a report from Axios.

Here Is What You Need to Know

Trump’s tariffs, which impose a baseline 10% duty on U.S. imports and higher rates on dozens of countries, have rattled financial markets and raised concerns about inflation. Economists and business leaders worry that higher import costs could drive up consumer prices and disrupt supply chains.

China has already retaliated with a 34% tariff on U.S. imports, further escalating the trade conflict. The U.S. stock market, which had already taken a hit following Trump’s tariff announcement, was expected to decline further on Friday due to China’s response.

As tensions rise, Newsom’s efforts highlight the growing divide between Trump’s economic policies and leaders in states that rely on international trade. Whether California can successfully negotiate separate trade agreements remains uncertain, but Newsom’s move signals an attempt to distance the state from federal policies that could harm its economy.

Published April 4th 2025, 20:54 IST