Tariffs on imports - California sues Trump administration

The lawsuit demands the blocking of the tariffs imposed by the Trump administration, stating that these measures are an abuse of presidential powers and cause serious financial damage to both the state and the national economy.

The document highlights that the US Constitution grants the power to set tariffs exclusively to Congress. The law referenced by the Trump administration, the International Emergency Economic Powers Act (IEEPA), does not allow the president to "tax all goods entering the United States on a whim," the state said in its lawsuit.

"President Trump's new tariff regime has already had devastating impacts on the economy, creating chaos in the stock and bond markets, wiping out hundreds of billions of dollars in market capitalization in hours, chilling investment in the face of such consequential Presidential action with no notice or process, and threatening to push the country into recession," the lawsuit said.

The lawsuit also mentions that California, the fifth-largest economy in the world and the largest importer among US states, "bears an inordinate share" of the tariffs' costs" from the new tariffs.

Specifically, the tariffs may negatively affect the functioning of 12 California ports, which handle up to 40% of all imports to the US, and threaten the state's agricultural exports, which amounted to $23.6 billion in 2022. This poses a threat to thousands of jobs.

The lawsuit, filed by Governor Gavin Newsom and State Attorney General Rob Bonta in federal court in San Francisco, seeks to block the US Department of Homeland Security and Customs and Border Protection from implementing the respective customs measures.

White House response and other lawsuits

White House Deputy Press Secretary Kush Desai criticized California Governor Gavin Newsom for attempting to block federal trade policy.

"The entire Trump administration remains committed to addressing this national emergency that's decimating America's industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations," Desai said.

According to Reuters, the Trump administration is already involved in three other lawsuits related to the new tariffs.

One lawsuit was filed in New York by the Liberty Justice Center, demanding the complete cancellation of tariffs. Another was filed by a Florida businessman challenging the tariffs on Chinese goods. The third lawsuit, filed by representatives of the Blackfeet Native American tribe in Montana, concerns tariffs imposed on Canada.

US trade war

In early April, US President Donald Trump imposed a 10% tariff on goods from most countries that are trade partners, as well as increased tariffs on states with "high barriers to American imports."

The tariffs were imposed according to presidential orders based on the "International Emergency Economic Powers Act (IEEPA)," which grants the president the power to respond to unusual or emergency threats to the country. Trump described the US trade deficit as a national crisis that threatens the country's industrial potential and economic security.

Subsequently, most tariffs were temporarily suspended for 90 days. A separate 145% tariff was set on Chinese goods, with exceptions for certain categories of electronics.

In response, China imposed a 125% tariff on US products.

The European Union also imposed mirror tariffs, which are currently on hold.

Meanwhile, there is a division in the Trump administration's position regarding the trade war with China.