The lawsuit, submitted to the U.S. District Court for the Northern District of California, contends that President Donald Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada, and China is unlawful. The Act allows the president to freeze or block transactions in response to foreign threats but does not grant the power to impose tariffs, according to the suit.

Newsom argues that such tariffs require Congressional approval and have resulted in inflated costs that could lead to billions in damages for California, the largest U.S. state economy and a major exporter. “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy—driving up prices and threatening jobs,” he stated. The lawsuit warns that increased costs could hinder California’s ability to plan for future services.

“No state is poised to lose more than the state of California,” Newsom added during a press conference in the farm-rich Central Valley, a region vital to the state’s agricultural output. Many businesses have indicated they will pass the costs of these tariffs onto consumers, potentially impacting the state budget, which heavily relies on income tax revenues from capital gains.

In response to the lawsuit, a White House official criticized Newsom, suggesting that he should focus on issues like crime and homelessness rather than challenging the administration’s tariff strategies. “The entire Trump administration remains committed to addressing this national emergency that’s decimating America’s industries,” said White House spokesperson Kush Desai.

The state is seeking an immediate court order to block the tariffs. This legal action comes shortly after Newsom requested that other countries exempt California exports from retaliatory tariffs, with no agreements reported thus far. Additionally, he has launched a tourism campaign aimed at attracting Canadian visitors to California.

Christine Gemperle, a second-generation almond farmer in the Central Valley, expressed her concerns about the trade war’s impact on her business, highlighting the uncertainty surrounding access to necessary resources at affordable prices. “Will we be able to access what we need to grow our crops, and if so, will we even be able to afford it?” she asked.

As California navigates these challenges, the outcome of Newsom’s lawsuit could significantly influence the state’s economic landscape and its agricultural sector moving forward. By taking this stand, Newsom not only seeks to protect California’s interests but also aims to undermine the Trump administration’s authority and approach to trade policy, reflecting a growing resistance to federal actions perceived as harmful to state economies.