California Gov. Gavin Newsom announced Wednesday he is suing President Trump over his sweeping tariffs — claiming that the levies are “wreaking chaos” on the Golden State, which has the largest economy in the US.
The lawsuit will argue that Trump’s use of the International Emergency Economic Powers Act to impose hefty tariffs on Mexico, Canada and China, and a 10% tariff on all imports, is unlawful.
“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 lawsuit will also argue that enacting such tariffs requires approval from congress, Newsom’s office said.
California, the world’s fifth-largest economy, could lose billions of dollars to tariffs, according to Newsom.
The state is also the first to take legal action against Trump over the tariffs.
Trump has implemented 10% baseline tariffs on most foreign imports and higher taxes on goods from Mexico, Canada and China under the International Emergency Economic Powers Act. However, last week, the president announced his tariff scheme would be put on pause for 90 days after dozens of countries came forward looking to strike up a deal.
The only country Trump didn’t spare was China, which he slapped with an eye-popping 125% duty over what he called “a lack of respect” from Beijing. That combined with a 20% “fentanyl tariff” already in place means some imports will be subject to a total tariff of 145%.
Newsom is set to discuss the lawsuit alongside California Attorney General Rob Bonta on Wednesday.
“The president’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said in a statement, according to the LA Times. “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 game the President is playing has very real consequences for Californians across our state.”
The lawsuit also comes days after Newsom asked countries to exempt California exports from retalitory tariffs, however, no deals have been announced.
