California launches legal challenge against Trump's ‘illegal' tariffs

Yahoo

06-05-2025

California is preparing to ask a court to block Donald Trump's 'illegal' tariffs, accusing the president of overstepping his authority and causing 'immediate and irreparable harm' to the world's fifth-largest economy.
The lawsuit, to be filed in federal court on Wednesday by California's governor, Gavin Newsom, and attorney general, Rob Bonta, is the most significant challenge yet to Trump's flurry of on-again-off-again tariffs.
In the complaint, California officials argue that the US constitution explicitly grants Congress the power to impose tariffs and that the president's invocation of emergency powers to unilaterally escalate a global trade war, which has rattled stock markets and raised fears of recession, is unlawful.
'No state is poised to lose more than the state of California,' Newsom said, formally unveiling the lawsuit during a press conference at an almond farm in the Central valley on Wednesday. 'It's a serious and sober moment, and I'd be … lying to you if I said it can be quickly undone.'
Related: After losing homes and businesses, LA wildfire victims face a hurdle to rebuilding: Trump's tariffs
Invoking a statute known as the International Emergency Economic Powers Act of 1977 (IEEPA), Trump has issued a series of declarations imposing, reversing, delaying, restarting and modifying tariffs on US trading partners.
The complaint argues that the law does not give the US president the authority to impose tariffs without the consent of Congress. It asks the court to declare Trump's tariff orders 'unlawful and void' and to order the Department of Homeland Security and Customs and Border Protection to stop enforcing them.
'The president is yet again acting as if he's above the law. He isn't,' Bonta said at the press conference on Wednesday, noting that it was the state's 14th lawsuit against the Trump administration in less than 14 weeks. 'Bottom line: Trump doesn't have the singular power to radically upend the country's economic landscape. That's not how our democracy works.'
Trump has said tariffs are necessary to ensure 'fair trade', protect American workers and turn the US into an 'industrial powerhouse'.
In a statement responding to the lawsuit, White House spokesman Kush Desai said the administration was 'committed' to the president's trade strategy. '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,' he said.
Newsom said his office had informed the White House in advance that it was bringing this lawsuit, but that the governor has not spoken to the president directly about it.
Earlier this month, on what he called 'liberation day', the president imposed a sweeping 10% tariff on nearly all imported goods and higher tariffs for a host of countries, most of which he later paused for 90 days.
A 25% tariff on imports from Canada and Mexico, the US's largest trading partners, remains in effect, while Trump's actions have provoked a trade war with China, its third-largest trading partner, subject to US tariffs of 145%.
California, the US's largest importer and second-largest exporter with an economy larger than most countries, relies heavily on trade with Mexico, Canada and China, the state's top trading partners. The complaint says the economic consequences of Trump's tariffs on the state will be 'significant'.
California is the first US state to bring a lawsuit against the Trump administration's tariff policies. Earlier this week, a legal advocacy group filed a similar lawsuit on behalf of US businesses that import goods from countries targeted by the levies, asking the US court of international trade to block Trump's tariffs.
Newsom said said the economic consequences of the tariffs would be reflected in a revised budget proposal he will submit next month. 'Across the spectrum, the impacts are off the charts.'
'Regardless of all the scientific and engineering advances, farming is still hard work, and the weather makes every year a gamble,' said Christine Gemperle, who hosted the governor and attorney at her almond farm. 'The last thing we need is more uncertainty and not knowing whether we can ride this one out.'
California is the nation's top agricultural exporter, shipping nuts, tomatoes, wine and rice around the world. California's agricultural exports totalled nearly $24bn in 2022.
After Trump's announcement of across-the-board levies, Newsom said his administration would pursue new trade deals with international partners to exempt California from retaliatory tariffs. It also launched a campaign to encourage Canadian tourism to California, which has fallen dramatically in response to the Trump administration's policies. Newsom called the effort a 'sign of the times'.
'We talk about own goals. We talk about stupidity,' he said of Trump's pursuit of a global trade war. 'This needs to be updated in the next Wikipedia or the next encyclopedia as a poster child for that.'