LOS ANGELES: California plans to sue the federal government over President Donald Trump’s sweeping tariff regulations that have had a great effect on international trade. On Wednesday, Democratic Gov. Gavin Newsom announced that the state would sue, claiming Trump unlawfully used the International Emergency Economic Powers Act to impose tariffs-in some cases up to 145 percent-without proper authority.
The lawsuit argues that the tariffs harmed California's economy by increasing consumer prices, threatening jobs, and disrupting global trading relationships. Being the largest state economy in the United States and one of the top exporters and importers in the country, California's economy is uniquely exposed to international markets, particularly with trade partners, China, Mexico, and Canada.
Newsom commented that the tariffs had caused economic chaos and pledged to protect California families and businesses from further harm. "We're standing up for American families who can't afford to let the chaos continue," Newsom said in a statement.
This lawsuit represents the first time Newsom has taken a direct leadership role in suing the administration of Donald Trump, although California has an extensive history of suing the federal government on policy matters. The timing also raises political eyebrows as Newsom is seen as a probable presidential candidate for 2028.
If the tariffs are continued or reinstated, economists state, California stands to lose billions in trade revenue, particularly through its major ports and tourism sectors.Unless the situation reestablishes trade stability, the state, which would stand as the world's fifth-largest economy if viewed in isolation, could suffer long-term fiscal repercussions. The case would place the limits of presidential authority over trade and economic emergency powers on trial.
[Source Credit: Business Recorder]
