An illustration photo taken in Paris on April 4, 2025, shows a screen displaying stock market index graphs and the word “Tariffs” styled in US flag colors, symbolizing the escalating trade tensions. On the same day, global markets continued their steep decline as nations struggled to deal with the fallout from US President Donald Trump’s intensifying trade war. Despite the chaos, the White House insisted that the American economy would ultimately prevail.
In a significant escalation of opposition to Trump’s trade policies, California announced a lawsuit against the federal government on Wednesday. Governor Gavin Newsom and Attorney General Rob Bonta declared that the president lacked the constitutional authority to unilaterally impose tariffs.
“This is the worst own-goal in American history — an act of profound self-destruction,” Newsom stated, criticizing Trump’s handling of the economy. With California representing 14 percent of the US GDP and boasting a population of 40 million, Newsom warned that the state stands to suffer severe economic losses, potentially amounting to billions of dollars, if international trade continues to contract.
California, which would rank as the world’s fifth-largest economy if independent, could be among the hardest hit by the turbulence Trump’s tariffs have triggered. Newsom’s office highlighted that these policies have already created widespread uncertainty for businesses nationwide.
Trump, who has consistently championed tariffs as a means to rebalance America’s trade relationships, launched his campaign with promises to impose tough trade measures. His administration’s actions began with punitive tariffs against Mexico and Canada, culminating in his so-called “Liberation Day,” during which a slew of tariffs were placed on numerous countries, including long-standing allies. Although many of these tariffs have since been paused, their erratic rollout has caused massive volatility, wiping trillions of dollars from global stock markets.
Newsom condemned Trump’s economic strategy as a shift from free-market capitalism to cronyism, arguing that it disproportionately benefits billionaire allies while inflicting hardship on ordinary Americans — including Trump supporters.
“This is corruption on full display — relentless, blatant, and devastating,” Newsom declared. “How are we sitting back and letting this happen?”
Attorney General Rob Bonta, speaking at the same press conference, emphasized that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify tariffs was unlawful. The lawsuit contends that IEEPA does not authorize the president to impose tariffs and that this power belongs exclusively to Congress.
“We are asking the court to reaffirm the Constitution and stop the president from overstepping his authority,” Bonta said. “Trump is not above the law.”
This legal challenge joins more than a dozen other lawsuits California has filed against the Trump administration during his term.
Responding to the suit, a White House spokesperson dismissed it as a political maneuver, accusing Newsom of neglecting state issues such as crime, homelessness, and housing affordability in favor of “obstructing President Trump’s historic efforts to address America’s chronic trade deficit
