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California has argued that President Trump will use the International Emergency Economic Force to impose tariffs on Mexico, Canada and China, or that a 10% tariff on all imports is illegal. California Gov. Gavin Newsom said tariffs have inflated billions of dollars in damages in the country’s most populous state.
California Gov. Gavin Newsom said Wednesday that he will file a lawsuit challenging President Donald Trump’s authority to impose drastic tariffs that sparked the world trade war.
The lawsuit will either use international emergency economic forces to impose tariffs on Mexico, Canada and China, or argue that a 10% tariff on all imports is illegal. The law allows the president to freeze and block transactions in response to foreign threats.
The lawsuit filed in US District Court for the Northern District of California would argue that such tariffs require approval from Congress to enact, the News office said in a news release.
Trump has provided many justifications for increasing tariffs, including that they are designed to promote US production and stop the country from illicit fentanyl flow. California’s move follows the Trump administration’s rapidly changing tariff plans.
According to Newsom, de facto tariffs have increased billions of dollars in losses in California, the largest economy in the US state and is a massive exporter.
“President Trump’s illegal tariffs are causing disruption to California families, businesses and our economy. It’s price hikes and threatening work,” he said in a statement. “We’re standing up for American families who can’t afford to continue the chaos.”
Newsom will discuss the lawsuit Wednesday in the farm-rich Central Valley with California Attorney General Rob Bonta. California is a farming powerhouse, with many nuts, fruits and vegetables, and the state is doomed to other countries.
The state asks the court to stop the duties immediately.
The announcement comes days after Newsom asked the state to exempt California exports from retaliatory duties. It has not been announced yet.
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