California becomes first US state to file lawsuit to block Trump's tariffs

California challenges Trump's sweeping tariffs in court, arguing he overstepped authority under emergency powers law and caused economic harm to the state and nation

California became the first state to legally challenge US President Donald Trump's broad tariffs on foreign imports, filing a lawsuit on Wednesday in a federal court. Governor Gavin Newsom’s administration contends that Trump exceeded his legal authority in imposing the tariffs.

 

In the suit, filed in San Francisco, Governor Newsom and Attorney General Rob Bonta argue that Trump’s actions have caused economic damage both to California and the broader US economy. They claim the President abused his powers by implementing the tariffs without Congressional approval.

 

In a statement, Newsom said, "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," he added.

 

Why did Trump impose tariffs?

 

On April 2, Trump levied a 10 per cent baseline tariff on imports from all nations, with steeper rates on countries the administration deemed to have significant barriers to US goods. Most of those higher tariffs were later suspended for a 90-day period.

 

However, the Trump administration did not give any reprieve to China, imposing tariffs as high as 145 per cent on Chinese goods, barring some electronic products. China countered with a 125 per cent tariff on US goods, while the European Union has prepared its own retaliatory tariffs — though these are currently on hold.

 

Trump cited the International Emergency Economic Powers Act of 1977 to justify the tariffs. The law grants presidents authority to address “unusual and extraordinary” threats to national security.

 

However, California’s lawsuit disputes this interpretation, asserting that the 1977 law does not authorize a president to declare a trade emergency of this scope and act unilaterally on tariffs.

 

Why has California moved against Trump's tariffs?

 

The state’s legal filing points out that California — ranked as the fifth-largest economy globally if it were a country — has been directly affected. Its major trade relationships with China, Mexico, and Canada have been disrupted, and the state argues that continued enforcement of the tariffs will inflict further harm.

 

Newsom and Bonta are seeking a court order to prevent the Department of Homeland Security and Customs and Border Protection from carrying out the tariff measures.

 

The California lawsuit joins at least two other legal actions challenging the tariffs. The Liberty Justice Center has filed a case in the Court of International Trade in New York, aiming to block all the tariffs. Separately, a Florida-based small business owner is contesting the China-specific tariffs in federal court.

 

(With agency inputs)