California Sues Trump Administration Over Tariffs

Governor Gavin Newsom and Attorney General Rob Bonta announced Wednesday that they are suing President Donald Trump over his tariff’s, becoming the first state in the country to do so.

According to the suit, which was filed in the U.S. District Court for the Northern District of California, they argue that the tariffs are illegal because, under the U.S. Constitution, only Congress has the power to put tariffs into place. They also argue that Trump has no basis to issue the tariffs because he has no power under the International Economic Emergency Powers Act of 1977 (IEEPA). While the IEEPA provides the President broad authority to regulate a variety of economic transactions following a declaration of national emergency, there have been some questions if tariffs can be imposed by the President through that instead of the more limiting Trading With the Enemy Act of 1917 (TWEA). While Trump was the first President to invoke IEEPA in issuing tariffs, previous Presidents have used TWEA, including President Richard Nixon, who imposed temporary 10% tariffs in 1971.

The suit, State of California v. Donald J. Trump,  argues that Trump has no authority to impose tariffs under IEEPA. In addition, the suit argues that the tariffs are “near-daily threats” of financial distress and that the tariffs hurt California more than any other state as they are 14% of the American economy with an annual GDP of $3.9 trillion. They have asked the court in the suit to declare the orders “unlawful and void”, as well as have government organizations like the U.S. Customs and Border protection to stop enforcing them.

Governor Newsom first announced the suit on his podcast early on Wednesday during an interview with former White House Chief of Staff Rahm Emanuel.

“Trump doesn’t have the unilateral authority to impose one of the largest tax increases in U.S. history,” said Newsom. “Impacts of these tariffs are disproportionately being felt here in California, the No. 1 manufacturing state in America, a state that will be significantly impacted by this unilateral decision by the president of the United States.”

Newsom proceeded to make further statements during the day, including on X and with Bonta at a press conference.

“Donald Trump does not have the authority to unilaterally impose the largest tax hike of our lifetime with his destructive tariffs,” posted Newsom on X. “We’re taking him to court.”

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” added Newsom in a statement. “We’re standing up for American families who can’t afford to let the chaos continue. No state is poised to lose more than the state of California.”

Bonta likewise echoed Newsom’s statements on Wednesday.

“The president’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” explained Bonta. “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. I am proud to go to bat alongside Governor Newsom to fight for California’s vibrant economy, businesses, and residents.”

In their official response, Newsom also invoked quotes by Senator Ted Cruz (R-TX), political commentator Ben Shapiro, and the U.S. Department of Commerce showing how many from his own party and administration were against the tariffs. Newsom did not, however, release what the monetary costs of such a large lawsuit would be, focusing instead on theoretical costs that the tariffs would have on the state.

“Listen, I love President Trump, I’m his strongest supporter, and I think he’s doing incredible things as president,” quoted Cruz. “But here’s one thing to understand, a tariff is a tax.”

The Trump administration vowed to fight the California suit later on Wednesday. While the legal challenge for it would likely come through court first, the White House made it clear that they wouldn’t tolerate the tariffs being blocked.

“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,” said White House spokesman Kush Desai in a statement.

The suit follows a long string of measures the state has taken against the Trump administration dating back to November, when “Trump-Proofing” measures were installed by Newsom and Bonta in preparation for a Trump presidency. This has included, amongst many other instances, bringing forth new legislation to help protect illegal immigrants from deportation, furiously blocking all attempts to federally end California’s 2035 gas-powered car sales ban, trying to skirt around federal tariffs by having California trade more directly with other countries, appealing a huge slash in food assistance funding, and, most recently, launching a new tourist program appealing directly to Canadians to visit California.

While Trump hasn’t responded to the California lawsuit as of early afternoon on Wednesday, previous remarks the day before indicate that he would not be backing down on them any time soon.

“We’re making tremendous amounts of money, taking in billions and billions, hundreds of billions of dollars in tariffs from other countries that, for many, many decades, just ripped off the United States,” Trump said of the tariffs. “And it’s time that we not allow that to happen.”

Both California and the Trump administration also signaled that they would appeal the District Court ruling should it not favor them.