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.
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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.
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