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The suit will argue that Trump's use of the International
Emergency Economic Powers Act to impose tariffs on Mexico,
Canada and China or a 10% tariff on all imports is unlawful. The
act enables a president to freeze and block transactions in
response to foreign threats.
The lawsuit, which will be filed in the U.S. District Court for
the Northern District of California, will also argue that
enacting such tariffs requires approval from Congress, Newsom's
office said in a news release.
Trump has offered many justifications for increasing tariffs,
including that they are designed to spur U.S. manufacturing and
stop the flow of illicit fentanyl into the country. California's
move follows rapidly changing tariff plans by the Trump
administration.
Newsom says the tariffs in effect have resulted in inflated
costs and billions of dollars in damage in California, which has
the largest economy among U.S. states and is a massive exporter.
“President Trump’s unlawful tariffs are wreaking chaos on
California families, businesses, and our economy — driving up
prices and threatening jobs,” he said in a statement. “We’re
standing up for American families who can’t afford to let the
chaos continue.”
Newsom will discuss the lawsuit alongside California Attorney
General Rob Bonta later Wednesday in the farm-rich Central
Valley. California is a farming powerhouse, with many of the
nuts, fruits and vegetables the state grows destined for other
countries.
The state will ask the court to immediately block the tariffs.
The announcement comes days after Newsom asked countries to
exempt California exports from retaliatory tariffs. No deals
have yet been announced.
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