Judge dismisses California's lawsuit over Trump tariffs, citing jurisdiction issue

Yahoo

2 days ago

SACRAMENTO, California — A U.S. District Court judge on Monday dismissed California officials' lawsuit over President Donald Trump's tariffs, concluding the case belongs in an out-of-state court that specializes in trade disputes.
The ruling — separate from a pair of high-profile rulings in other courts last week — partially sides with the Trump administration, which argued the case belongs in the New York-based U.S. Court of International Trade rather than the U.S. District Court for the Northern District of California, where Gov. Gavin Newsom and state Attorney General Rob Bonta earlier filed their case.
But Judge Jacqueline Scott Corley dismissed the case outright rather than immediately transfer it to the trade court, as Trump's attorneys had requested. By doing so, she granted the state's request to leave a path open for California to appeal the ruling to the U.S. 9th Circuit Court of Appeals, a famously liberal-leaning bench.
Still, Scott Corley's decision is a blow to California officials who had hoped the district court would rule on the legality of Trump's unilateral tariffs. Last week, a D.C. District Court judge went the opposite direction and invalidated Trump's tariffs, ruling in favor of two toy-import companies. The trade court also struck down Trump's tariffs last week, although his taxes on imports have largely been left in place while federal litigation plays out.
Scott Corley's ruling against California was expected. She had previously signaled that her San Francisco court likely didn't have jurisdiction in the case, noting the trade court has authority over tariff cases — which was designed to prevent a patchwork of tariffs rulings in federal district courts.
California in April became the first state to sue Trump over his so-called 'Liberation Day' tariffs, claiming the president has no authority to unilaterally tax imports under the International Emergency Economic Powers Act. Trump has invoked tariffs without congressional approval by claiming the country faces a national emergency due to its trade deficits with other countries.
Representatives for Newsom and Bonta didn't immediately respond to requests for comment.
While Scott Corley's ruling is a setback for the state, California officials joined Democratic leaders across the country last week in celebrating the pair of federal court rulings that determined Trump had overstepped his executive powers.
'It's raining tacos today,' Newsom said on the MeidasTouch Podcast on Thursday, an apparent reference to the TACO acronym that Wall Street investors have used to refer to whiplash over Trump's see-sawing import taxes. The president has bristled at the name, which stands for 'Trump always chickens out.'