California has filed a lawsuit against President Trump, alleging that the tariffs imposed by his administration are illegal. The lawsuit, backed by California Attorney General Rob Bonta and Governor Gavin Newsom, claims that the President has overstepped his authority by using the International Emergency Economic Powers Act of 1977 (IEEPA) to impose tariffs without congressional consent. These actions, according to the lawsuit, have disrupted financial markets, businesses, and consumers globally.
Attorney General Bonta expressed his concerns by stating, “The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal. As the fifth largest economy in the world, California understands global trade policy is not just a game.”
The imposed tariffs have significant implications for California’s economy. As the state's agricultural sector faces retaliatory tariffs and a decline in international trade, businesses, including small enterprises and larger ports, are at risk. Vendors working with California have indicated they will pass increased costs onto the state due to these tariffs.
Governor Newsom emphasized the impact on Californians, saying, “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs. We’re standing up for American families who can’t afford to let the chaos continue.”
In his series of executive orders under the IEEPA, President Trump has imposed 25% tariffs on Mexico and Canada and a 10% universal tariff on other trading partners. These actions have already prompted China to engage in a trade war with the U.S., with tariffs exceeding 100% on several goods. Other countries also face high tariff rates, currently paused for 90 days.
The state of California argues that these tariffs will cause significant financial harm, highlighting that "the U.S. stock market suffered the largest two-day loss in its history" following the tariff announcements. The lawsuit requests that the court declare these tariff orders unlawful and prohibit the Department of Homeland Security and Customs and Border Patrol from enforcing them.
A copy of the complaint is available for public viewing.