California Gov. Gavin Newsom said Wednesday that his state will file a lawsuit to challenge U.S. President Donald Trump to impose widespread tariffs that sparked a global trade war.
The lawsuit will argue that it is illegal for Trump to impose tariffs on Mexico, Canada and China on the International Emergency Economic Powers Act, or 10% tariffs on all imports. The bill allows the president to freeze and block transactions in response to foreign threats.
Trump has provided many reasons for increasing tariffs, including aimed at stimulating U.S. manufacturing and preventing illegal fentanyl from entering the country.
California's move follows the Trump administration's rapid change in tariff plans. This is the first state to take legal action against tariffs, which has previously challenged legally in lawsuits filed on behalf of business owners and civil liberties organizations.
The actual tariffs result in cost and billions of dollars in California, the largest economy in the U.S. state and a large number of exporters, Newsom said.
“President Trump's illegal tariffs are causing chaos for California households, businesses and our economy – raising prices and threatening jobs,” he said in a statement. “We support American families who cannot keep the chaos going.”
Like Democrats on Capitol Hill, California argues that tariffs require Congressional approval. Senate Democrats joined four Republicans in a token vote to denounce Trump’s tariffs on Trump earlier this month, but Trump loyalists led the House where they held a similar vote.
Trade with Canada is affected
Newsom plans to discuss the lawsuit with California Attorney General Rob Bonta later Wednesday in the farm's affluent Central Valley. California is an agricultural powerhouse with many nuts, fruits and vegetables in other countries.
The state will ask the court to immediately block the tariffs.
Responding to questions from CBC News, the White House press secretary said U.S. President Donald Trump still believes Canada should be the 51st state, but may have “flexibility” when it comes to tariffs on the Canadian auto industry.
Wednesday's announcement comes days after Newsom asked countries to exempt retaliatory tariffs and measures.
California, which has its economy in terms of GDP, is only smaller than a few countries, borders Mexico and has huge trade relations with Canada. Trump expressed dissatisfaction with his updated trilateral trade agreement with Mexico and Canada in 2019.
The Consulate General of Canada estimates that Canada and California have $53 billion in two-way transactions each year, with nearly 2,000 Canadian-owned companies and a total of 90,000 employees.
Currently, California currently exports about $2 billion more goods and services to Canada than imports, but California's distillery and alcohol suppliers have been punished by tensions over tariff threats in Washington, whose products have been weakened by the shelves of alcohol stores in several provinces, the consulate said.
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Newsom also called Canadians to Canadians as part of the newly launched tourism campaign.
“Our inclusive values, love for natural beauty and passion for innovation have bound us, and we look forward to welcoming you with the same community spirit you have been showing us.” Newsom said in the advert: “
U.S. border data shows that nearly 900,000 people traveling from Canada to the United States in March are traditionally a busy month of cross-border travel. The decline caused the governor of California to lobby Canadians to return to his state.
California estimates Canadians are the second largest international spender in its tourism economy, and news agency noted that 2 million Canadians visited last year. But state tourism officials said Canadian visits fell 12% in February compared to the same month last year.
At home, California’s actions will mark a recovery in tensions between the country and the Trump administration. The conflict that dates back to the first Trump administration has already created conflicts in automobile emissions and the environment, reproductive rights and abortion, as well as wildfire prevention and careers.
