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California Files Lawsuit Against Federal Government Challenging Presidential Tariff Powers

George Cranston profile image
by George Cranston
California Files Lawsuit Against Federal Government Challenging Presidential Tariff Powers

California has initiated legal action against the federal government over President Donald Trump's recently imposed tariffs, according to statements made Wednesday by Governor Gavin Newsom and Attorney General Rob Bonta. The lawsuit contends that President Trump does not have the constitutional authority to implement these trade measures.

The legal challenge represents the most significant opposition to date against tariff policies that have caused global market volatility and created uncertainty for businesses throughout the United States. Governor Newsom described the tariff implementation as "the worst own-goal in the history of this country" and "one of the most self-destructive things that we've experienced in modern American history."

California, with its 40 million residents and substantial export-oriented economy representing 14 percent of US GDP, anticipates bearing significant economic consequences from the tariff fluctuations. The governor's office projects that California—which would rank as the world's fifth-largest economy if independent—could lose billions in revenue if Trump's policies reduce international trade.

Trump has consistently favored tariffs as instruments to address what he considers imbalanced trading relationships with other nations, a position he frequently promoted during his campaign. His administration initially targeted Mexico and Canada with punitive tariffs before expanding charges to numerous countries, including allies, during what Trump called "Liberation Day".

Though many of these duties have since been temporarily suspended, their disorganized announcement triggered market instability that eliminated trillions of dollars in value. Newsom argued that Trump's economic policies are harming average Americans while benefiting wealthy supporters, describing the situation as shifting "from free capitalism to crony capitalism, just like that."

The lawsuit argues that the International Emergency Economic Powers Act, which Trump cited to impose tariffs reaching as high as 145 percent, does not provide presidential authority to levy such charges on imports. "We're asking the court to rein in the president... and uphold the Constitution," Bonta stated, asserting that tariff powers properly belong to Congress.

A White House spokesperson dismissed the lawsuit, suggesting that Newsom should focus on California's domestic challenges rather than opposing "President Trump's historic efforts to finally address the national emergency of our country's persistent goods trade deficits." This case joins over a dozen other lawsuits California has filed against the Trump administration.

George Cranston profile image
by George Cranston

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