California has filed a lawsuit aiming to block former President Donald Trump’s sweeping tariffs on foreign imports, accusing him of overstepping his authority and causing economic harm both to the state and the nation.
The tariffs, which include a blanket 10% on goods from all countries and a steeper 145% on Chinese imports—excluding certain electronics—were introduced under the justification of protecting national interests. Trump also imposed higher rates on countries his administration claimed maintained significant barriers to U.S. goods, though many of those tariffs were paused for 90 days. In response, China hit back with a 125% tariff on U.S. goods, and the European Union has approved retaliatory measures, though they remain on hold.
In its lawsuit, California argues that Trump’s actions violate the U.S. Constitution, which grants Congress—not the president—the power to impose tariffs. The state challenges Trump’s use of the International Emergency Economic Powers Act (IEEPA) as legal justification, stating that the law doesn’t permit the president to “tax all goods entering the United States on a whim.”
“President Trump’s new tariff regime has already caused significant economic disruption,” the suit states. “It has sparked chaos in financial markets, wiped out hundreds of billions in market value within hours, chilled investment, and risks dragging the country into a recession.”
As the largest U.S. state economy and the fifth largest in the world, California contends it is being disproportionately affected by the tariffs. The state is home to 12 major ports that handle 40% of U.S. imports, generating significant tax revenue. The lawsuit also highlights the potential damage to California’s agricultural sector, which exported $23.6 billion worth of goods in 2022—exports now vulnerable to retaliatory tariffs that could lead to widespread job losses.
White House spokesperson Kush Desai dismissed the lawsuit, saying Governor Gavin Newsom should focus on crime, homelessness, and rising prices in his state rather than interfering with the federal government’s trade policy.
In his executive orders, Trump cited laws like the IEEPA, which grants presidents emergency powers to address extraordinary threats. He has described the U.S. trade deficit as a national emergency that threatens the country’s industrial base and increases reliance on foreign adversaries.
