Gov. Gavin Newsom and California Attorney General Rob Bonta today filed a lawsuitin federal court challenging President Trump’s use of emergency powers to enact broad-sweeping tariffs that hurt states, consumers, and businesses.

The lawsuit argues that President Trump lacks the authority to unilaterally impose tariffs through the International Economic Emergency Powers Act, creating immediate and irreparable harm to California, the largest economy, manufacturing, and agriculture state in the nation.

These tariffs have disrupted supply chains, inflated costs for the state and Californians, and inflicted billions in damages on California’s economy, the fifth largest in the world

The lawsuit, filed in the United States District Court for the Northern District of California, requests the court to declare the tariffs imposed by President Trump void and enjoin their implementation.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in a statement. “We’re standing up for American families who can’t afford to let the chaos continue.”

“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal. As the fifth largest economy in the world, California understands global trade policy is not just a game. Californians are bracing for fallout from the impact of the President’s choices — from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table — this game the President is playing has very real consequences for Californians across our state. I am proud to go to bat alongside Governor Newsom to fight for California’s vibrant economy, businesses, and residents.”

“The President lacks authority to enact unilateral tariffs,” added Bonta.

The lawsuit argues that President Trump lacks the authority to unilaterally impose tariffs against Mexico, China, and Canada or create an across-the-board 10% tariff.

“The President’s use of the International Economic Emergency Powers Act to enact tariffs is unlawful and unprecedented,” said the attorney general.

Bonta said the President, under a 1977 law, has the authority to take certain actions if he declares a national emergency in response to a foreign national security, foreign policy, or economic threat. “The law specifies many different actions the President can take, but tariffs aren’t one of them,” said Bonta. “In fact, this is the first time a president has attempted to rely on this law to impose tariffs.”

Supreme Court precedent

The lawsuit invokes the U.S. Supreme Court’s “major questions doctrine,” which holds that in novel matters of vast economic and political significance, federal agencies and the executive branch must have clear and specific authorization from Congress.

In recent years, the Supreme Court has applied this standard to strike down major initiatives, including President Obama’s Clean Power Plan and President Biden’s student loan forgiveness program, ruling that novel executive actions with broad impacts on the national economy cannot rest on vague statutory authority.

“It is difficult to imagine a more economically significant set of actions than the one Trump is taking on tariffs, which have inflicted hundreds of billions of dollars in economic losses on a whim, using a statute that doesn’t mention tariffs,” the Governor’s Office said in a press release. “The Court, applying this doctrine even-handedly, will find that such expansive action absent congressional approval is a clear violation of the law.”

California and the U.S. economy

The Governor’s Office released statistics on California’s key role in the national and world economy.

• California’s gross domestic product was $3.9 trillion in 2023, making it 50% bigger than the GDP of the nation’s next-largest state, Texas.
• California drives national economic growth and also sends over $83 billion more to the federal government than it receives in federal funding.
• California is the leading agricultural producer in the country and is also the center for manufacturing output in the United States, with over 36,000 manufacturing firms employing over 1.1 million Californians.
• California engaged in nearly $675 billion in two-way trade in 2024, supporting millions of jobs throughout the state. California’s economy and workers rely heavily on this trade activity, particularly with Mexico, Canada, and China, its leading trade partners.
• Over 40% of California imports come from Mexico, Canada and China, totaling $203 billion of the more than $491 billion in goods imported by California in 2024. These countries also buy nearly $67 billion in California exports, which was over one-third of the state’s $183 billion in exported goods in 2024.

Tariffs irreparably harm California businesses and consumers

As the largest economy in the nation, the largest agriculture state in the nation, and the largest U.S. trading partner, “the harm of the tariffs on the state of California is immense,” the Governor’s Office said in today’s announcement. “President Trump’s policies have already inflicted hundreds of billions of dollars in economic losses.”

Today’s lawsuit follows Newsom’s recent announcement of California’s goal to create new strategic trade relationships with international partners aimed at strengthening shared economic resilience and protecting California’s manufacturers, workers, farmers, businesses, and supply chains.  The governor has also announced a new international campaign to help maintain the strong tourism partnership between California and Canada.