Newsom Takes Trump to Court Over 'Unlawful' Tariffs Hurting California

California Governor Gavin Newsom has announced plans to sue the Trump administration over its sweeping tariffs, which he says are harming the state’s economy and pushing up costs for families and businesses.

The lawsuit, expected to be filed in the U.S. District Court for the Northern District of California, challenges the use of the International Economic Emergency Powers Act by the president to impose tariffs without congressional approval.

California's Economy at Risk, Newsom Warns

"Trump's unlawful tariffs are already wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs," Newsom said in a statement Wednesday. He noted that the tariffs have cost the state billions of dollars due to increased prices and supply chain issues.

California, the fifth-largest economy in the world, is especially vulnerable to trade shocks. It is the largest importing state in the U.S., with deep economic ties to China, Canada, and Mexico. Newsom has previously said the Trump administration’s retaliatory tariffs would have an "outsized impact" on businesses across the state.

Lawsuit Marks a First for a U.S. State

This is the first time a state is directly challenging President Trump’s tariff policy in court. At least three other legal challenges have been filed against the tariffs, arguing that the president overstepped his authority under emergency powers.

The Trump administration has defended the use of the law, claiming that trade deficits, drug trafficking, and undocumented immigration represent national emergencies that justify executive action.

Looking for Alternatives

To protect California’s economy, Newsom is also exploring trade agreements with other countries. He hopes these partnerships will shield the state from some of the fallout of the ongoing trade war.

More Tariffs Could Be Coming

While some of Trump's broader “reciprocal” tariffs have been paused, his administration’s duties on Chinese imports remain in place — currently set at a steep 145%. Reports suggest that additional levies on semiconductors and pharmaceuticals may also be on the horizon.

Newsom’s legal move could open a new front in the growing backlash to Trump’s aggressive trade agenda. Whether the courts will side with California remains to be seen.