California Becomes First State to Sue Trump Over Tariffs

LOS ANGELES, April 16, 2025 — California has filed a groundbreaking lawsuit against former president Donald Trump, alleging that it is the first U.S. state to contest federal tariffs imposed under emergency powers. According to the lawsuit, Trump misapplied the International Emergency Economic Powers Act (IEEPA) in justification of sweeping trade tariffs, which, California claims, have greatly injured its economy.

The lawsuit was announced at an almond farm in Central Valley by Governor Gavin Newsom and Attorney General Rob Bonta, highlighting the huge toll tariffs have taken on California agriculture. Newsom recorded saying it's against economic damage, not just to the state but to the health and well-being of 40 million residents and thousands of businesses.

The legal counsel of the state states that such tariffs have been authorised to be imposed by only Congress and that using IEEPA for trade policy has no precedent and is unconstitutional. Recently, Newsom referred to recent Supreme Court rulings that have restricted executive overreach, arguing that consistency warrants a similar outcome here.

With the fifth-largest economy in the world, California constitutes one of the major points within U.S. trade. Beyond the use of an enormous share of its almonds, figs, and olives, with tariffs up to 145% on the goods imported from China today.

The White House completely rejected the lawsuit – a spokesperson for the White House, Kush Desai, calls Newsom's refusal to address issues at the state level and instead pursue such a political stunt. The reality is that tariffs are needed to help rectify chronic trade deficits and replace manufacturing jobs in America.

Advisors warn such tariffs might cause permanent damage before any benefit is realised. Mounting political and market pressure has pressed Trump into rolling back or putting holds on some tariffs, adding to uncertainties.

While they're the first to file suit, it's fair to say that many other lawsuits have been filed by small businesses and civil groups. Legal experts contend this case might establish the arguing domain for presidential overreach in trade authority.

The outcome of this lawsuit could have wide-ranging consequences, not just for U.S. trade policy but for the broader global economy, as California plays a key role in international markets.