California Attorney General Rob Bonta and Governor Gavin Newsom have taken legal action against the tariffs imposed by President Trump. They filed an amicus brief in the case of Oregon v. Trump, challenging the President's use of the International Emergency Economic Powers Act (IEEPA) to levy these tariffs. Last month, they initiated a lawsuit contesting Trump's executive orders related to tariff imposition under IEEPA.
Attorney General Bonta expressed his opposition, stating: “President Trump’s illegal tariffs impact businesses, consumers, and states across the nation and it is our responsibility as state leaders to advocate and defend our people against harmful — and illegal — actions.” He further argued that the statute does not grant the authority for such tariffs, describing any interpretation otherwise as "wild, nonsensical, and irresponsible."
The Trump administration has issued multiple executive orders concerning tariffs on U.S. trading partners under IEEPA. These measures have created uncertainty affecting California's economy by hindering budget planning and economic decision-making.
The average tariff rate under this regime is estimated at 25%, with a universal tariff of 10% applied to all trading partners. Some specific partners face increases up to 50%, effective July 9, 2025. Canada and Mexico are currently subject to tariffs up to 25%, while China's rates have fluctuated dramatically.
Retaliatory tariffs from major trading partners like China, Canada, and the European Union have compounded these issues. The financial impact is significant, potentially reducing American incomes and productivity by cutting 546,000 full-time jobs.
These tariffs could also lead to higher prices and supply chain disruptions; for instance, import volume at the Port of Los Angeles has significantly decreased. The U.S. stock market experienced its largest two-day loss following recent tariff announcements.
The economic consequences extend beyond immediate financial losses; there is an increased risk of recession that could affect public finance and state budgets negatively.
A copy of the brief filed by Attorney General Bonta is available for public access.