CALIFORNIA – In response to the Trump Administration’s tariffs, Governor Gavin Newsom called on long-standing trade partners to exempt California-made products from retaliatory measures.
“Donald Trump’s tariffs do not represent all Americans, particularly those that I represent here in the fifth largest economy in the world — the state of California,” said Newsom in a Youtube short.
In the latest tariff news, President Donald Trump said if China does not withdraw its retaliatory tariffs, the United States will impose an additional 50% tariffs on Chinese goods effective April 9th.
The administration imposed a minimum 10% tariff – or tax on all imports to the US last week, with many countries targeted with even higher tariffs.
Newsom goes on to remind California’s international trading partners that the state is a stable trading partner.
“And we hope you consider that as it relates to California-made products,” said Newsom.
Newsom is directing administration to find ways to work with trade partners
According to Newsom’s office over 40% of the state’s imports come from Mexico, Canada, and China, totaling $203 billion in goods imported by California in 2024.
“If these goods are taxed each time they cross the border, the price of the final product will rise and ultimately be passed on to California consumers,” said the news release.
In addition, retaliatory tariffs will impact more than 60,000 small business exporters – Mexico, Canada and China bought nearly $67 billion in California exports in 2024.
With this announcement, Newsom said he is directing his administration to find ways to work with trade partners that protect California’s economy, including workers, businesses, and supply chains.
The administration will look for ways to:
- Support job growth and new ideas in industries that rely on trade.
- Help businesses and workers affected by trade issues.
- Ensure access to important supplies, like materials needed for rebuilding after the Los Angeles firestorms.
Trump says now is great time to invest amid market declines
According to the Trump Administration, ‘tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit.’
In the two days following Trump’s April 2 ‘Liberation Day’ tariff announcement, the S&P 500 lost $5 trillion in market value.
Trump told investors this is a great time to invest and “get rich, richer than ever before!!!” in a Truth Social post.
A UCLA Anderson Forecast announced that Trump’s tariff policy and ensuing trade wars will likely lead to a contraction in the manufacturing sector.
“…a downturn could result over the coming year or two, and that we should now be on a Recession Watch,” said UCLA Anderson Forecast economist Clement Bohr.
