California Gov. Gavin Newsom announced Wednesday he is suing President Trump over his sweeping tariffs — claiming that the levies are “wreaking chaos” on the Golden State, which has the largest economy in the US.
The lawsuit will argue that Trump’s use of the International Emergency Economic Powers Act to impose hefty tariffs on Mexico, Canada and China, and a 10% tariff on all imports, is unlawful.
“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. “We’re standing up for American families who can’t afford to let the chaos continue.”
The lawsuit will also argue that enacting such tariffs requires approval from congress, Newsom’s office said.
California, the world’s fifth-largest economy, could lose billions of dollars to tariffs, according to Newsom.
The state is also the first to take legal action against Trump over the tariffs.
Trump has implemented 10% baseline tariffs on most foreign imports and higher taxes on goods from Mexico, Canada and China under the International Emergency Economic Powers Act. However, last week, the president announced his tariff scheme would be put on pause for 90 days after dozens