California Attorney General Rob Bonta and Gov. Gavin Newsom filed a lawsuit Wednesday challenging the Trump administration’s authority to impose tariffs they say threaten the state’s economy.
The lawsuit contests President Donald Trump’s use of the International Emergency Economic Powers Act of 1977 (IEEPA) to implement tariffs without congressional approval. Since February, the administration has issued executive orders imposing tariffs that have disrupted global markets.
The California officials argue that the tariffs are projected to shrink the U.S. economy by $100 billion annually, increase inflation by 1.3%, and cost the average U.S. family $2,100.
“The president’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said in a statement. “As the fifth largest economy in the world, California understands global trade policy is not just a game.”
White House spokesperson Kush Desai struck a combative tone Wednesday morning in response to the lawsuit.
“Instead of focusing on California’s rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump’s historic efforts to finally address the national emergency of our country’s persistent goods trade deficits,” Desai said. “The entire Trump administration remains committed to addressing this national emergency that’s decimating America’s industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations.”
According to Bonta’s office, the lawsuit specifically challenges Trump’s 25% tariffs on Mexico and Canada, a universal 10% tariff on other U.S. trading partners, and tariffs reaching 145% on Chinese goods. Officials noted that China has responded with reciprocal 125% tariffs on U.S. goods.
The nation’s largest importer and second-largest exporter, California faces particular challenges to its ports, small businesses, and agricultural sector from the tariffs and potential retaliatory measures from other countries.
“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.
The suit claims that the Constitution gives Congress, not the president, the authority to impose tariffs and argues that IEEPA does not provide the necessary congressional authorization for such actions.
California is seeking a court declaration that would void the tariff orders and halt their implementation by the U.S. Department of Homeland Security and U.S. Customs and Border Protection.
Trump announced April 2 that he would levy reciprocal tariffs on nearly every U.S. trading partner, followed the next day by tariffs on imported cars and car parts. A week later, he said he was pausing reciprocal tariffs — except those against China — for 90 days.
Others have sued the Trump administration on similar grounds over tariff policies.
The Liberty Justice Center, a Texas-based libertarian-leaning public-interest law center, sued Trump on Monday, alleging he improperly used the 1977 law to impose tariffs. The organization’s complaint requests the U.S. Court of International Trade issue a broad order blocking the across-the-board tariffs.