California Becomes First State To Sue Over Trump-Era Tariffs

California Governor Gavin Newsom has filed a landmark lawsuit against former President Donald Trump’s controversial tariffs, marking the first time a US state has taken legal action over the trade measures that have disrupted global commerce, NYT reported.

The suit disputes Trump’s use of emergency powers to justify the tariffs, arguing that the legal basis for imposing them was unconstitutional and economically damaging.

As the world’s fifth-largest economy—larger than any other US state and most nations—California holds a significant stake in global trade. The state leads the country in both manufacturing output and agricultural production, making it particularly vulnerable to retaliatory trade policies.

The White House, defending the tariffs as a necessary step to address long-standing trade imbalances, dismissed the lawsuit. A spokesperson in a statement said the administration remains focused on "resolving this national emergency that's decimating America's industries."

"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 spokesman Kush Desai said.

READ: Trump Enters Tariff Talks With Japan Amid Broader Trade Negotiations

Newsom and the state's Attorney General Rob Bonta announced the lawsuit at a news conference at an almond farm - one of the biggest crops California produces.

Nearly 82% of the world's almonds come from the Golden State. It's also the nation's sole producer of artichokes, figs, olives, walnuts and raisins.

Tariffs Impact

Newsom argued California has been "disproportionately affected" by the tariffs and that's why the state, which has already filed 15 lawsuits against Trump since January, would lead the charge against the levies - which currently are 10% on most countries and 145% on China.

"That's our state of mind," the governor said. "That's why we're asserting ourselves on behalf of 40 million Americans."

The lawsuit challenges Trump evoking the International Emergency Economic Powers Act to enact the tariffs, arguing the act had never been used for such levies and such powers rest with the US Congress.

The lawsuit cites multiple times from rulings by the US Supreme Court against the Biden administration in its quest to forgive student debt, noting the high court called Biden's manoeuvres a "transformative expansion" of presidential authority.

Newsom said if the Supreme Court is "consistent, then this lawsuit is a lock" for the state.

The act has never been used to issue tariffs by any president, congressional research shows.

First State To File Legal Action

While California is the first state to file legal action against the Trump administration over the levies, several other lawsuits filed by small businesses and a civil rights group have similarly challenged Trump's authority on the matter.

Since Trump's inauguration in January there has been a flurry of announcements on tariffs.

The US president says the import taxes will encourage US consumers to buy more American-made goods, increase the amount of tax raised, and lead to huge levels of investment in the country.