Newsom sues to stop Trump's tariffs, citing harm to California's economy

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(This story has been updated with new information.)

California Gov. Gavin Newsom and Attorney General Rob Bonta sued President Donald Trump on Wednesday April 16, seeking an immediate injunction to stop what they say is his illegal use of emergency powers to impose highly damaging tariffs "that hurt states, consumers, and businesses.".

Tariffs have an outsized impact on California businesses, the two state officials argue, including more than 60,000 small business exporters. The tariffs will also affect access to construction materials critical to rebuilding after the Los Angeles fires, the officials say, including timber, wood, steel and aluminum, and key drywall components. Retaliatory tariffs will also impact farmers and ranchers, they say.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs. We’re standing up for American families who can’t afford to let the chaos continue,” said Newsom in a news release.

The lawsuit, filed in the United States District Court for the Northern District of California, requests the court immediately halt the sweeping tariffs imposed by Trump against nations around the world, saying he lacks the authority to impose them through the International Economic Emergency Powers Act unilaterally, and is "creating immediate and irreparable harm to California, the largest economy, manufacturing, and agriculture state in the nation."

That act, passed by Congress in 1977, affords a U.S. President a broad set of powers to be used in an emergency, but does not include tariffs as an option, state officials argue, making Trump's recent actions unlawful.

During a press conference Wednesday, April 16, Bonta described Trump’s actions as an attempt to override Congress — and thereby “trampling over his own party" in control of Congress — and “steamroll” the separation of powers.

“Congress hasn't given him the authority to impose these sweeping and chaotic tariffs pursuant to emergency powers, which means he can't do it,” Bonta said. “Bottom line, Trump doesn't have the singular power to radically upend the country's economic landscape.”

Supreme Court showdown on tariffs likely between California, Trump administration

The filing appears to set the stage for a showdown in the U.S. Supreme Court if necessary. The lawsuit will invoke the Supreme Court’s major questions doctrine, "which holds that in matters of vast economic and political significance, federal agencies and the executive branch must have clear and specific authorization from Congress."

In recent years, California officials note, the high court has used the standard to strike down major initiatives, including President Barack Obama’s Clean Power Plan and President Joe Biden’s student loan forgiveness program, ruling that broad impacts on the national economy cannot rest on vague statutory authority.

They say it's time to do the same with Trump, arguing he lacks the authority to unilaterally impose tariffs against Mexico, China, and Canada or create an across-the-board 10% tariff, and that his use of the International Emergency Powers Act to enact them is "unlawful and unprecedented."

"It is difficult to imagine a more economically significant set of actions than the one Trump is taking on tariffs, which have inflicted hundreds of billions of dollars in economic losses on a whim, using a statute that doesn’t mention tariffs," the release says. "The Court, applying this doctrine even-handedly, will find that such expansive action absent congressional approval is a clear violation of the law."

Newsom echoed the latter point during Wednesday's press conference, saying the lawsuit is a "lock" if the Supreme Court is consistent.

Bonta said in the earlier news release: “The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal. As the fifth largest economy in the world, California understands global trade policy is not just a game."

He added, "Californians are bracing for fallout from the impact of the President’s choices — from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table. ... I am proud to go to bat alongside Governor Newsom to fight for California’s vibrant economy, businesses, and residents.”

How big is California's economy?

California’s gross domestic product was $3.9 trillion in 2023, state officials say, which is 50% bigger than the nation’s next-largest state, Texas. The state also sends over $83 billion more to the federal government than it receives in federal funding, and is the leading agricultural producer in the country. It also has over 36,000 manufacturing firms employing over 1.1 million Californians.

Those firms, sometimes spurred by California regulations against harmful products or pollution, have created new industries and supplied the world with goods spanning aerospace, computers and electronics, and, most recently, zero-emission vehicles

California engaged in nearly $675 billion in two-way trade in 2024, and its economy and workers rely heavily on trade, officials say, particularly with Mexico, Canada, and China — the state's top 3 trade partners. Over 40% of the Golden State's imports come from these countries, totaling $203 billion of more $491 billion in goods imported by California in 2024.

The three countries are also the state's top three export destinations, buying nearly $67 billion in California exports, over one-third of the state’s $183 billion in exported goods in 2024.

Trump has argued that lopsided imports over exports, like those in the Golden State, are a national emergency and security risk. But California officials see it differently.

"As the largest economy in the nation, the largest agricultural state, and the largest U.S. trading partner, the harm of the tariffs on California is immense. President Trump’s policies have already inflicted hundreds of billions of dollars in economic losses," the governor's office said in its release.

During Wednesday's press conference, Newsom repeatedly described Trump's tariffs as disproportionately impacting California.

The lawsuit follows the governor’s recent announcement of California’s goal to create new strategic trade relationships with international partners, to strengthen shared economic resilience and protect state businesses, workers, and supply chains. Newsom also has announced a new international campaign to help maintain a strong tourism partnership between California and Canada. The Coachella Valley, like other areas, depends heavily on Canadian winter residents, so-called snowbirds who own and rent properties and visit to escape cold weather.

Desert Sun reporter Paris Barraza contributed to this report.

Janet Wilson is senior environment reporter for The Desert Sun and co-authors USA Today Climate Point. She can be reached at jwilson@gannett.com.