California Sues Trump Administration Over Tariffs

California filed a lawsuit against the federal government on Wednesday, challenging President Donald Trump’s authority to impose sweeping tariffs without congressional approval. Governor Gavin Newsom and Attorney General Rob Bonta argued that the Constitution grants tariff-setting power to Congress—not the president—and that Trump’s erratic trade policies have destabilized global markets and harmed the U.S. economy.

The lawsuit marks the most aggressive legal pushback yet against Trump’s tariffs, which have triggered stock market volatility and left businesses nationwide grappling with uncertainty. Newsom, whose state accounts for 14% of U.S. GDP, warned that California—the world’s fifth-largest economy if ranked independently—stands to lose billions in revenue if the policies remain in place.

“This is the worst own-goal in the history of this country,” Newsom said at a press conference. “It’s one of the most self-destructive things we’ve experienced in modern American history.”

Legal Battle Over Presidential Authority

The suit contends that Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose tariffs as high as 145% on foreign goods. The law allows the president to regulate financial transactions during emergencies but does not explicitly grant tariff-imposing powers, the state argues.

“We’re asking the court to rein in the president and uphold the Constitution,” Bonta told reporters. “The president is yet again acting as if he’s above the law. He isn’t.”

Trump has long championed tariffs as a tool to rebalance U.S. trade relationships, vowing on the campaign trail to levy steep import taxes. His administration has imposed—and later paused—punitive tariffs on allies and rivals alike, including Mexico, Canada, and China. The unpredictable rollout has rattled investors, wiping trillions from global markets.

Newsom accused Trump of enriching billionaire allies while ordinary Americans—including many of the president’s own supporters—bear the economic brunt. “We’ve gone from free capitalism to crony capitalism, just like that,” he said.

White House Dismisses Lawsuit as Political Distraction

A White House spokesperson dismissed California’s legal challenge, framing it as a diversion from the state’s domestic crises.

“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 address our country’s trade deficits,” the spokesperson said.

The case is the latest in a string of lawsuits California has filed against the Trump administration. Legal experts say it could set a precedent on presidential trade powers, particularly as Trump continues to wield tariffs as a central policy tool.

Newsom, widely seen as a potential 2028 presidential candidate, has sought to position California as a global economic counterweight to Trump’s trade wars. In recent weeks, he has urged foreign leaders to exempt California exports—such as wine, almonds, and tech products—from retaliatory tariffs.

“How in the hell are we sitting by and allowing this to happen?” Newsom said. “This is the personification of corruption.”

The lawsuit now heads to federal court, where a ruling could either curb or reinforce Trump’s ability to reshape U.S. trade policy unilaterally.