Governor says import tariffs are \u2018wreaking chaos\u2019 on the state\u2019s families, businesses and economy<\/p>\n\n\n\n
California<\/a> is preparing to ask a court to block Donald Trump<\/a>\u2019s \u201cillegal\u201d tariffs<\/a>, accusing the president of overstepping his authority and causing \u201cimmediate and irreparable harm\u201d to the world\u2019s fifth-largest economy.<\/p>\n\n\n\n The lawsuit, to be filed in federal court on Wednesday by California\u2019s governor, Gavin Newsom<\/a>, and attorney general, Rob Bonta, is the most significant challenge yet to Trump\u2019s flurry of on-again-off-again tariffs.<\/p>\n\n\n\n In the complaint, California officials argue that the US constitution explicitly grants Congress the power to impose tariffs and that the president\u2019s invocation of emergency powers to unilaterally escalate a global trade war, which has rattled stock markets and raised fears of recession<\/a>, is unlawful.<\/p>\n\n\n\n \u201cNo state is poised to lose more than the state of California<\/a>,\u201d Newsom said, formally unveiling the lawsuit during a press conference at an almond farm in the Central valley on Wednesday. \u201cIt\u2019s a serious and sober moment, and I\u2019d be \u2026 lying to you if I said it can be quickly undone.\u201d<\/p>\n\n\n\n Invoking a statute known as the International Emergency Economic Powers Act of 1977 (IEEPA), Trump has issued a series of declarations imposing, reversing, delaying, restarting and modifying tariffs on US trading partners.<\/p>\n\n\n\n The complaint argues that the law does not give the US president the authority to impose tariffs without the consent of Congress. It asks the court to declare Trump\u2019s tariff orders \u201cunlawful and void\u201d and to order the Department of Homeland Security and Customs and Border Protection to stop enforcing them.<\/p>\n\n\n\n \u201cThe president is yet again acting as if he\u2019s above the law. He isn\u2019t,\u201d Bonta said at the press conference on Wednesday, noting that it was the state\u2019s 14th lawsuit against the Trump administration<\/a> in less than 14 weeks. \u201cBottom line: Trump doesn\u2019t have the singular power to radically upend the country\u2019s economic landscape. That\u2019s not how our democracy works.\u201d<\/p>\n\n\n\n Trump has said tariffs are necessary to ensure \u201cfair trade\u201d, protect American workers and turn the US into an \u201cindustrial powerhouse\u201d.<\/p>\n\n\n\n In a statement responding to the lawsuit, White House spokesman Kush Desai said the administration was \u201ccommitted\u201d to the president\u2019s trade strategy. \u201cInstead of focusing on California\u2019s rampant crime, homelessness and unaffordability, Gavin Newsom is spending his time trying to block President Trump\u2019s historic efforts to finally address the national emergency of our country\u2019s persistent goods trade deficits,\u201d he said.<\/p>\n\n\n\n Newsom said his office had informed the White House in advance that it was bringing this lawsuit, but that the governor has not spoken to the president directly about it.<\/p>\n\n\n\n Earlier this month, on what he called \u201cliberation day<\/a>\u201d, the president imposed a sweeping 10% tariff on nearly all imported goods and higher tariffs for a host of countries, most of which he later paused for 90 days.<\/p>\n\n\n\n A 25% tariff on imports from Canada and Mexico, the US\u2019s largest trading partners, remains in effect, while Trump\u2019s actions have provoked a trade war with China, its third-largest trading partner, subject to US tariffs of 145%.<\/p>\n\n\n\n California, the US\u2019s largest importer and second-largest exporter with an economy larger than most countries, relies heavily on trade with Mexico, Canada and China, the state\u2019s top trading partners. The complaint says the economic consequences of Trump\u2019s tariffs on the state will be \u201csignificant\u201d.<\/p>\n\n\n\n California is the first US state to bring a lawsuit against the Trump administration\u2019s tariff policies. Earlier this week, a legal advocacy group filed a similar lawsuit<\/a> on behalf of US businesses that import goods from countries targeted by the levies, asking the US court of international trade to block Trump\u2019s tariffs.<\/p>\n\n\n\n Newsom said said the economic consequences of the tariffs would be reflected in a revised budget proposal he will submit next month. \u201cAcross the spectrum, the impacts are off the charts.\u201d<\/p>\n\n\n\n \u201cRegardless of all the scientific and engineering advances, farming is still hard work, and the weather makes every year a gamble,\u201d said Christine Gemperle, who hosted the governor and attorney at her almond farm. \u201cThe last thing we need is more uncertainty and not knowing whether we can ride this one out.\u201d<\/p>\n\n\n\n California is the nation\u2019s top agricultural exporter, shipping nuts, tomatoes, wine and rice around the world. California\u2019s agricultural exports totalled nearly $24bn<\/a> in 2022.<\/p>\n\n\n\n After Trump\u2019s announcement of across-the-board levies, Newsom said his administration would pursue new trade deals with international partners to exempt California from retaliatory tariffs. It also launched a campaign to encourage Canadian tourism to California<\/a>, which has fallen dramatically in response to the Trump administration\u2019s policies. Newsom called the effort a \u201csign of the times\u201d.<\/p>\n\n\n\n \u201cWe talk about own goals. We talk about stupidity,\u201d he said of Trump\u2019s pursuit of a global trade war. \u201cThis needs to be updated in the next Wikipedia or the next encyclopedia as a poster child for that.\u201d<\/p>\n\n\n\n