California has filed a lawsuit against Donald Trump’s import tariffs, arguing that the President lacks the authority to implement them without Congressional approval.
"The President's chaotic and haphazard implementation of tariffs is not only deeply troubling, it's illegal," California Attorney-General Rob Bonta said at a press conference on Wednesday, noting that Trump did not have the "unilateral power" to alter the country's economic landscape. "That's not how our democracy works," he stressed.
Bonta emphasised that Congress did not authorise the tariffs, let alone their subsequent increase, suspension, and immediate reimposition on a whim.
Negative impact on local businesses
According to Bonta and California Governor Gavin Newsom, Trump's tariffs have already had a negative impact on local businesses and consumers by disrupting supply chains and inflating costs.
Since his return to power, the Republican billionaire has sparked a trade war by reversing decades of free trade. China faces American tariffs of up to 145%, while some imports from Canada and Mexico are taxed at 25%.
In early April, Donald Trump also imposed 10% tariffs on products from dozens of countries and threatened even harsher taxes before suspending them.
Trump claims this protectionist policy aims to bring industrial production back to the United States. However, experts warn that, in the short term, it creates significant uncertainty and is likely to result in higher prices for consumers, bankruptcies, and job losses.
World's fifth largest economy
California, the world’s fifth-largest economy, accounts for 14% of US GDP. In addition to being the tech industry’s hub, the most populous US state - 39 million inhabitants - is a leading manufacturing and agricultural producer, heavily reliant on trade with Mexico, Canada, and China.
“No other state will be more affected by this uncertainty,” Newsom said, adding that Trump's actions, which he described as reckless, were destroying the US economy.
Newsom, a Democrat, also accused Trump of betraying his supporters, noting that the trade war disproportionately impacts farmers, who largely voted for the Republican businessman.
The California Governor criticised the market downturn caused by Trump's tariffs which, he said, diminish Americans’ retirement savings.
In early April, Newsom announced that California would seek agreements with other countries to be exempt from upcoming trade retaliations against the United States.
Fifteenth lawsuit filed by California against Trump
According to the lawsuit filed on Wednesday, the 1977 law cited by Trump does not allow him to impose tariffs, a power the US Constitution grants to Congress.
“Where is Congress? (…) Do your job!” Newsom reprimanded, criticising the Republican majority in the Senate and House of Representatives.
This marks the fifteenth legal action California has taken against the Trump administration since the Republican billionaire’s return to power. The Democratic state also challenges other Trump actions such as the repeal of birthright citizenship and the authority granted to Elon Musk to cut the federal budget.
During his first term, California led the resistance against Trump, filing more than 120 lawsuits against his government.
