California has become the first state in the nation to sue Donald Trump over his “reckless and unprecedented” tariff plan, which is projected to wipe billions off the U.S. economy.
The lawsuit, filed Wednesday by Governor Gavin Newsom and California Attorney General Rob Bonta, argues that as a “global leader in trade,” the Golden State will bear “an inordinate share” of the costs that result from the sweeping levies.
Trump announced the “reciprocal” tariffs on April 2, which he hailed as “Liberation Day” for America.
California is home to major state industries, including tech centers in Silicon Valley, entertainment in Los Angeles, and agriculture. All rely heavily on global trade with Mexico, Canada and China – all of which have been targeted by Trump’s tariffs.
The lawsuit argues that Trump’s use of the International Emergency Economic Powers Act to impose the tariffs is unlawful, and asks the court to immediately block the tariffs.
“California, as the fifth largest economy in the world and the country’s most populous state, stands to suffer unique harm from President Trump’s reckless and unprecedented actions on tariffs,” the lawsuit argues.
“California’s economy is larger than every country on Earth except the United States, China, Germany, and Japan. With over 39 million residents, California is the second largest economy in the world on a per capita basis,” the lawsuit notes.
California produced a gross state product of over $4 trillion in 2024, according to the suit, accounting for 13.7 percent of the entire U.S. gross domestic product.
“All told, President Trump’s tariffs will transform the State of California’s economic situation, put at risk its position as the fifth largest economy in the world, and directly impact Governor Newsom’s ability to deliver on his policy goals for all Californians,” the lawsuit states.
Newsom’s lawsuit is the governor’s most direct challenge to the president since he returned to the Oval Office in January. Though California has filed more than a dozen lawsuits challenging Trump’s policies this year, Wednesday’s suit is the first time Newsom has been a plaintiff.
Trump and Newsom had appeared to briefly set aside their animosity in the wake of the Los Angeles wildfires, after which Newsom appealed to the president for federal aid.
“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 announcement comes days after Newsom asked countries to exempt California exports from retaliatory tariffs, though no deals have yet been announced. He also launched a tourism campaign to entice Canadian visitors to California this week.
“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta added in a separate statement.
“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,” White House spokesperson Kush Desai said in a statement to The Independent.
The first suit in the country against the tariffs was filed in early April by the New Liberties Civil Alliance on behalf of a Florida stationery business entrepreneur particularly hard hit by the tariffs on Chinese imports.
The lawsuit is challenging Trump’s use of the International Emergency Economic Powers Act of 1977 (IEEPA), which requires extensive investigations before sanctions can be imposed. Trump has used opioid trafficking from China as a reason for the “emergency” tariffs against the country.
The lawsuit contends that Trump has not shown that his actions are “necessary” or tailored to address a drug trafficking emergency. In fact, lawyers note, Trump has said the actual reason for the tariffs is to reduce a trade deficit. In addition, the law only authorizes presidents to order sanctions against another country. “It does not allow a president to impose tariffs on the American people,” the suit states.
