California Governor Gavin Newsom and State Attorney General Rob Bonta announced on Wednesday that they are launching a lawsuit against the Trump administration in federal court, challenging President Donald Trump's sweeping tariffs imposed on U.S. trading partners. The legal action has been filed in the U.S. District Court for the Northern District of California, with the argument that President Trump lacks the presidential authority to unilaterally impose tariffs under the International Economic Emergency Powers Act, according to Newsom's office.
The lawsuit seeks a court ruling to declare the tariffs void and block their implementation. In his latest podcast episode, Governor Newsom emphasized that Trump does not have the unilateral authority to impose what he described as one of the largest tax increases in U.S. history. He highlighted the potential consequences of these tariffs, specifically how they could lead to increased prices for consumers.
Governor Newsom explained that the impacts of these tariffs are disproportionately affecting California, which is recognized as the No. 1 manufacturing state in America. He stated, "A state that will be significantly impacted by this unilateral decision by the president of the United States." Newsom’s remarks come as he positions himself as a potential 2028 Democratic presidential contender and continues to be an outspoken critic of Trump.
Attorney General Bonta echoed the governor's concerns, asserting that the president's tariffs are not only troubling but illegal. In his statement, he pointed out the wide-ranging implications of Trump's decisions on various sectors, stating, "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." Bonta expressed pride in supporting Governor Newsom in the fight for California’s vibrant economy and its residents.
The lawsuit contends that Trump cannot invoke the International Economic Emergency Powers Act to impose tariffs on key trading partners such as Mexico, Canada, and China, or to create a blanket 10% tariff. According to the governor's office, Trump has already imposed significant tariffs on most foreign countries, with China facing the highest rate at 145%. Other nations have been subjected to a 10% tariff after Trump delayed the implementation of higher duties for 90 days last week.
In response to the controversy, Trump defended his tariff policies during a press conference at the White House, asserting, "We're making tremendous amounts of money, taking in billions and billions, hundreds of billions of dollars in tariffs from other countries that, for many, many decades, just ripped off the United States." He emphasized that it was time for the U.S. to take a stand against unfair trading practices.
As of now, the White House has not provided a response to NBC News regarding the state's lawsuit. The ongoing legal battle highlights the contentious nature of trade policies and their profound impact on California's economy and its residents.
