California surpasses Japan as 4th largest economy, but Newsom warns of Trump tariffs threat

California's economy has surpassed Japan's, state Gov. Gavin Newsom announced, as he warned of potential impacts in the Golden State from President Trump's sweeping tariffs.The big picture: "CA just became the 4th largest economy in the WORLD," Newsom said on X Thursday, after his office announced data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis.By the numbers: California's gross domestic product (GDP) reached $4.1 trillion last year, compared with Japan's $4.02 trillion, according to the data.Only the U.S., China and Germany have bigger economies, according to the data.What they're saying: "California isn't just keeping pace with the world — we're setting the pace," Newsom said in a statement released by his office."Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation," he said."And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California's economy powers the nation, and it must be protected."Representatives for the Trump administration did not immediately respond to Axios' request for comment in the evening.Zoom out: California's attorney general filed a lawsuit against the Trump administration last week in an attempt to stop the president from enacting the tariffs."No state is poised to lose more than the state of California," Newsom said at a Thursday briefing on the state's economy.

California's economy has surpassed Japan's, state Gov. Gavin Newsom announced, as he warned of potential impacts in the Golden State from President Trump's sweeping tariffs.The big picture: "CA just became the 4th largest economy in the WORLD," Newsom said on X Thursday, after his office announced data from the International Monetary Fund (IMF) and the U.

S. Bureau of Economic Analysis.By the numbers: California's gross domestic product (GDP) reached $4.

1 trillion last year, compared with Japan's $4.02 trillion, according to the data.Only the U.

S., China and Germany have bigger economies, according to the data.What they're saying: "California isn't just keeping pace with the world — we're setting the pace," Newsom said in a statement released by his office.

"Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation," he said."And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California's economy powers the nation, and it must be protected.

"Representatives for the Trump administration did not immediately respond to Axios' request for comment in the evening.Zoom out: California's attorney general filed a lawsuit against the Trump administration last week in an attempt to stop the president from enacting the tariffs."No state is poised to lose more than the state of California," Newsom said at a Thursday briefing on the state's economy.

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