California Gov. Gavin Newsom announced Friday that he has directed state officials to begin pursuing independent trade agreements with foreign governments in a bid to shield the state’s economy from the ripple effects of President Donald Trump’s sweeping new tariffs.
In a sharply worded press release, Newsom distanced California from Trump’s economic agenda and called on international trading partners to exempt California-made goods from looming retaliatory tariffs. The governor cited the state’s massive economic influence and commitment to global commerce.
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“Donald Trump’s tariffs do not represent all Americans, particularly those that I represent here in the fifth-largest economy in the world: the state of California,” Newsom said. “We value international trade. We value our manufacturing base — the largest manufacturing economy in the United States of America.”
“California is a stable trading partner,” he added. “And we hope you consider that as it relates to California-made products.”
The move comes days after Trump unveiled what he called the “Liberation Day” tariffs — a sweeping set of reciprocal duties targeting dozens of countries, including China, India, South Korea, and members of the European Union. The White House framed the measures as essential to restoring American manufacturing and correcting decades of economic imbalance.
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“This was a patient that was very sick,” Trump said Thursday, referring to the U.S. economy. “It went through an operation on Liberation Day. And it’s going to be a booming country.”
But the markets have reacted sharply. On Friday, the Dow Jones Industrial Average plunged 2,200 points, a 5.5% drop, while the Nasdaq and S&P 500 tumbled 5.6% and 5.8% respectively, amid fears of an escalating global trade war.
China quickly responded to Trump’s tariffs with a 34% levy on all American goods, while Canada imposed a 25% tariff on U.S. vehicle imports. Canadian officials said the move was intended to incentivize domestic auto production and shield its workers.
Newsom characterized the tariffs as “the largest tax hike in our lifetime,” and framed his diplomatic outreach as a necessary countermeasure to protect California’s interests.
“California is ready to talk,” he said.
Newsom’s push for state-to-nation trade diplomacy is unconventional — trade policy is traditionally the purview of the federal government — but not unprecedented. California, given its size and economic clout, has previously signed nonbinding trade agreements and partnerships with foreign nations, often focused on climate change, technology, and innovation.
His latest effort, however, appears aimed at creating functional workarounds to federal policy.
While Newsom decried Trump’s tariffs, some labor leaders welcomed them. United Auto Workers President Shawn Fain praised the administration’s actions as “a tool in the toolbox” to bring back American jobs.
“[Tariffs] have to be good paying union jobs that set standards,” Fain told CBS News’ Face the Nation on Sunday.
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