California is taking the United States federal government to court over former President Donald Trump’s tariff decisions, saying the policies are harming the state’s economy and families.
Governor Gavin Newsom, a Democrat, announced on Wednesday that the state will file a lawsuit against the Trump administration. He said Trump’s use of high tariffs—some reportedly as high as 145%—is not only unlawful but also dangerous for California’s businesses, workers, and consumers.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy—driving up prices and threatening jobs,” Newsom said in a statement. “We’re standing up for American families who can’t afford to let the chaos continue.”
The legal action will argue that Trump misused the International Emergency Economic Powers Act to place tariffs on imported goods. The state believes that the law does not give a president the power to make such major trade changes without approval from Congress.
California, known for its massive economy and strong global trade links, says it is being hit the hardest. With many goods coming in and out of the state’s ports, and millions of international visitors and businesses, experts warn that California could lose billions if trade slows down due to tariffs.
According to Newsom’s office, countries like China, Mexico, and Canada—major trading partners—are already reducing business with the U.S., which could deeply affect California.
This case is one of over a dozen lawsuits that California has filed against the Trump administration in recent years. However, it is the first where Newsom is taking a leading role.
Despite efforts in recent months to avoid direct fights with Trump, especially after wildfires in January, Newsom said the impact of the tariffs is too great to ignore.
California, which would be the world’s fifth-largest economy if it were a country, is now challenging what it calls a harmful and unlawful trade policy.
