CALIFORNIA – Governor Gavin Newsom filed an amicus brief on July 30 supporting a lawsuit challenging the Trump administration’s tariff policy.
On August 1, tariffs on U.S. goods imports are scheduled to increase for more than 80 countries.
About 72% of U.S. goods imports already face Trump’s 10% minimum tariff, and much of the attention has focused on how the tariffs will impact the manufactured goods sector.
According to Newsom, Trump’s tariffs are having an outsized impact on California’s economy in recent months:
- Tariffs could cost California households $25 billion and over 64,000 jobs.
- From January to May 2025, California businesses paid $11.3 billion in tariff costs – the highest in the nation.
- The Port of Los Angeles is operating at 70% capacity, and Southern California has seen a 40% drop in trade and logistics related job postings.
California argues Trump lacks authority to impose tariffs
On April 16, Newsom and attorney general Rob Bonta sued, arguing Trump lacks authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 statute.
Trump has cited national emergencies – such as trade deficits and fentanyl trafficking, to justify urgent tariffs.
California’s July 30 amicus brief was part of a separate lawsuit filed by several small business owners, but aligns with the state’s arguments.
The brief supports the D.C. District Court’s ruling that the Trump administration overstepped its authority.
RELATED: CA governor supports federal court ruling declaring Trump’s tariffs unlawful
