2 weeks Ago
California Governor Gavin Newsom has announced that the state will take legal action to stop Donald Trump’s tariffs, setting the stage for a major legal battle over the president’s efforts to reshape global trade. The state intends to file a complaint on Wednesday in federal court in San Francisco, contesting Trump’s use of emergency powers to introduce sweeping tariffs against Mexico, China, and Canada, according to a statement from Newsom’s office. Officials say these measures are causing harm to consumers and businesses in what is the world’s fifth-largest economy.
Newsom, a Democrat widely seen as a potential presidential candidate for 2028, and California Attorney General Rob Bonta are seeking a court order to block the tariffs immediately. “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in the statement. Representatives for the White House have not yet responded to a request for comment on California’s challenge.
Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports is unprecedented. This move has unsettled markets, led to predictions of a possible recession, and strained ties with trading partners abroad. Also read: Donald Trump launches critical minerals probe to weigh new tariffs The IEEPA, passed in 1977, gives the president broad powers to regulate certain financial transactions when declaring a national emergency in response to an “unusual and extraordinary threat.
” It has usually been used to apply sanctions to countries, companies, and individuals. Trump is the first president to use this law to impose tariffs, announcing duties in February against China, Mexico, and Canada in response to what he called the “extraordinary threat” posed by undocumented immigrants and illegal drugs crossing US borders. The president is already facing at least three legal challenges to his tariffs.
Two complaints have come from conservative legal advocacy groups representing small businesses, and the third from members of the Blackfeet Nation in Montana. Major industries affected by the tariffs have so far avoided taking legal action themselves. Lawyers for the Justice Department have argued that all current cases should be handled by the Court of International Trade in Washington, which specialises in trade disputes, and are seeking to transfer district court cases there.
Also read: Japan's chief trade negotiator to visit Washington for tariff talks this week.
