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California’s Newsom Sues Trump Over ‘Toxic Uncertainty’ of Tariffs

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April 16, 2025

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California Governor Gavin Newsom sued to halt Donald Trump’s tariffs, setting up a high-stakes legal challenge to the president’s landmark effort to overhaul global trade.

The state is challenging Trump’s use of emergency powers to enact broad tariffs against Mexico, China and Canada. The governor cited harm to consumers and businesses, including those in agriculture and entertainment, in California, which has the world’s fifth-largest economy.

“President Trump’s new tariff regime has already had devastating impacts on the economy, creating chaos in the stock and bond markets, wiping out hundreds of billions of dollars in market capitalization in hours, chilling investment in the face of such consequential presidential action with no notice or process, and threatening to push the country into recession,” according to the complaint filed Wednesday in San Francisco federal court.

Newsom, a Democrat who’s considered a likely candidate to run for president in 2028, and California Attorney General Rob Bonta are seeking a court order to immediately block the levies. “No state is poised to lose more than the state of California,” Newsom said at a press conference as he warned of dire consequences for the state’s budget and economy.

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California’s Newsom Sues Trump Over ‘Toxic Uncertainty’ of Tariffs · Bloomberg News · Sentinel