California Governor Gavin Newsom initiated legal action against the Trump administration on Wednesday, filing a lawsuit aimed at blocking President Donald Trump’s tariffs. The suit argues that the tariffs inflict direct harm on California’s economy and contends that President Trump’s use of the International Economic Emergency Powers Act (IEEPA) to impose them is unconstitutional.
The lawsuit details significant economic repercussions allegedly stemming from the President’s actions.
“President Trump’s new tariff regime has already had devastating impacts on the economy, creating chaos in the stock and bond markets, wiping out hundreds of billions of dollars in market capitalization in hours, chilling investment… and threatening to push the country into recession,” the filing states.
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The legal challenge comes after President Trump’s announcement on April 9 regarding tariff adjustments. According to the information provided, this included implementing a 90-day pause on reciprocal tariffs for most countries, while tariffs on goods from China were increased by 125%. A baseline 10% tariff reportedly remained in place for other nations.
The White House pushed back strongly against the lawsuit. Spokesman Kush Desai criticized Governor Newsom’s focus, stating, “Instead of focusing on California’s rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump’s historic efforts to finally address the national emergency of our country’s persistent goods trade deficits.”
Desai affirmed the administration’s commitment to using all available tools, including tariffs and negotiations, to combat trade deficits perceived as detrimental to American industries and workers.
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Supporting the Governor’s action, California Attorney General Rob Bonta described President Trump’s tariff implementation as “chaotic and haphazard” and “illegal.”
In a statement Wednesday, Bonta highlighted the potential statewide impact: “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.”
This lawsuit is not the first legal challenge questioning the President’s use of IEEPA for recent tariff measures. Earlier this month, on April 3, the New Civil Liberties Alliance (NCLA), a conservative group, filed a lawsuit on behalf of a Florida-based small business challenging the China tariffs on similar grounds.
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The NCLA argued, “Congress passed the IEEPA to counter external emergencies, not to grant presidents a blank check to write domestic economic policy.”
Governor Newsom had previously indicated efforts to mitigate the impact of trade disputes, announcing plans to request exemptions for California-made products from retaliatory tariffs imposed by international trade partners.
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