Gov. Gavin Newsom announced a new plan on distancing California from President Donald Trump’s reverse tariffs on Friday, urging staff to pursue “strategic relations” with international trading partners and exclude state products from its own retaliatory export tariffs.
“Donald Trump’s tariffs do not represent all Americans,” he said in a video posted on social media. “And on behalf of the 40 million Americans living in California’s great state… our state of mind is to support stable business relationships around the world.”
To trading partners all over the world – California is here and ready to talk.
We don’t sit vaguely during Trump’s tariff war.
It accounts for 14% of US GDP. We are the fifth largest economy in the world.
We are not afraid to use the power of the market to fight back… pic.twitter.com/ytfbcww1so
– Gavin Newsom (@gavinnewsom) April 4, 2025
According to the plan, Newsom hopes:
It supports job creation and innovation in industries that rely on cross-border trade. It promotes economic stability for businesses and workers affected by federal trade disruptions. Protects access to critical supplies, including construction materials needed to help recover efforts following the devastating Los Angeles fire.
It is not clear what direct next steps the Newsom administration will impose, with the trading partners that the announcement directly mentions.
According to Article 10, Article 10, Article 10 of the Constitution, the State does not have the authority to negotiate or engage in independently of global transaction transactions relating to tariffs. As further outlined in Section 1, Section 8, the federal government reserves its rights only.
Trade with Mexico, Canada and China is essential to California’s economy. Last year, almost half of the state’s imports came from three countries, totaling $23 billion in trade. The three countries have purchased another $67 billion worth of exports from California.
Mexico and Canada have dodged the latest retaliatory tariffs, but China is currently facing fees of over 54%.
A 25% auto rate still applies to all three.
California imported $491 billion worth of goods in 2024. This is most of the US states. California exported $183 billion, the closest to Texas.
“California leads the country as the number one state in agriculture and manufacturing, and it is our workers, families and farmers who support this Trump tax rise and losing the most in the trade war,” Newsmom wrote Friday. “For our international partners: As the fifth largest economy in the world, Golden State will continue to be a stable and reliable partner for the generation that is coming, regardless of the turbulence that has emerged from Washington. California is not Washington, DC.”
An analysis by Yale Budget Labs found that tariffs are likely to increase overall inflation by 2.3% over the next year. This includes a 2.8% increase in food prices and an 8.4% increase in car prices. This is a rise in prices for an average American family by around $3,800.
During the governor of Newsom, the state has signed 38 international trade agreements with 28 partners.
The Los Angeles industry has already supported itself, starting with the ports of LA and Long Beach.
“Overall, this is bad for American consumers, American businesses and port facilities here in Southern California,” Celoka said, adding a port that handles about 40% of port imports and 30% of exports.
Currently, nine SOCAL residents are employed through ports, including those in the transport, logistics, transportation and warehouse industries.
“Whether you’re at the dock or you’re a forwarder and broker in our community, we’ll explain that there are fewer containers around the port that mean there’s less work here,” he explained.
