Friday, September 12, 2025

California Files Legal Challenge Against Trump Tariffs

California has filed a lawsuit against the Trump administration in what marks the first time a state has sued over the president’s use of tariffs, challenging his authority to impose sweeping import duties that have upended global trade.

The lawsuit, filed Wednesday in the US District Court for the Northern District of California, argues that President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs is unlawful because the statute doesn’t explicitly authorize such actions.

“The act has never been used to issue tariffs by any president,” the lawsuit states, noting that IEEPA has existed for nearly half a century.

California Governor Gavin Newsom, who announced the legal challenge alongside Attorney General Rob Bonta at an almond farm in the Central Valley, argues the tariffs have “disproportionately affected” the state’s economy. California, with the world’s fifth-largest economy, is America’s largest importer and second-largest exporter.

“California is the largest importer and exporter among US states. In 2024, California’s total merchandise trade reached $675 billion, accounting for close to 16% of gross state product,” according to the complaint.

The lawsuit specifically challenges Trump’s orders imposing tariffs on Mexico (25%), Canada (25% with certain exceptions), and China (now at a 145% effective rate), as well as a 10% universal tariff on all imports and threatened “reciprocal” tariffs of up to 50% on nearly 90 countries.

The White House defended the tariffs, with spokesman Kush Desai saying the administration “remains committed to addressing this national emergency that’s decimating America’s industries” while criticizing Newsom for “trying to block President Trump’s historic efforts.”

The lawsuit cites recent Supreme Court rulings against the Biden administration’s student debt forgiveness plan as precedent for limiting presidential authority. It claims the tariffs would shrink the US economy by $100 billion annually and cost the average American family $2,100.

Several nations have already imposed retaliatory tariffs that particularly impact California’s agricultural exports, including its wine and almond industries. The state produces 80% of America’s wine and 76% of the world’s almonds.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Despite Warmer Relations, US Envoy Says Canada Tariffs Likely to Persist

The United States has “moved beyond” President Donald Trump’s repeated suggestions that Canada become the...

Tuesday, May 13, 2025, 09:13:00 AM

Florida Negotiations: Will Trump Blink on Tariffs?

Negotiations over tariffs remain in flux after an urgent meeting between Treasury Secretary Scott Bessent...

Wednesday, April 9, 2025, 03:54:00 PM

No Relief for Shein and Temu Customers as White House Maintains Small Package Tariffs

Despite a new trade deal that temporarily reduces tariffs on many Chinese goods, the White...

Tuesday, May 13, 2025, 07:32:00 AM

Trump’s Accelerated Copper Tariff Threat Sends Prices Soaring

Tension is building across global metals markets as the Trump administration moves to impose copper...

Wednesday, March 26, 2025, 11:35:00 AM

Trump’s Mailbox Diplomacy Issues Fresh Tariff Letters Up to 70% Duties Worldwide

President Donald Trump has abandoned traditional bargaining in favor of a two-pager ultimatum, sending more...

Thursday, July 10, 2025, 07:21:00 AM