California Sues Trump Over “Unlawful Tariffs,” Calling Them a Threat to Jobs and Economy

California Governor Gavin Newsom has announced a major legal move against former President Donald Trump, filing a lawsuit over what he calls “unlawful tariffs” that are harming California’s economy, families, and businesses.
“These tariffs are wreaking chaos — driving up costs and threatening California jobs,” Newsom said in a statement Wednesday. “Donald Trump does not have the authority to impose these destructive and chaotic tariffs. America stands to lose too much.”
The lawsuit, to be filed in the U.S. District Court for the Northern District of California, will challenge Trump’s use of the International Emergency Economic Powers Act to justify sweeping tariffs on key international trading partners — a move Newsom says oversteps presidential power.
California, the largest manufacturing and trading state in the U.S., has been hit hard. Newsom noted that 40% of all U.S. goods movement passes through two ports in California, with nearly half of that trade linked to China.
“No state stands to lose more from these chaotic tariffs than California,” he said in a post on X. “We’re taking him to court.”
In 2024 alone, California’s trade volume exceeded $675 billion, supporting millions of jobs. The state’s top export destinations — Mexico, Canada, and China — accounted for nearly $67 billion in purchases, over a third of all California exports.
With this legal action, California becomes the first state to challenge the Trump administration’s tariff policies directly — a bold move underscoring the economic and political clash over America’s trade direction.