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The governor of California, Gavin Newsom, announced that the state is suing the Trump administration over tariff issues. Newsom criticized the Trump administration for unlawfully abusing tariff policies, causing serious chaos and damage to the U.S. economy. California has become the first state in the nation to sue the Trump administration over tariffs. In a statement, Newsom said that Trump's illegal tariffs are causing chaos for California families, businesses, and the economy, driving up prices and threatening jobs. These tariffs disrupt supply chains, increase costs for California and its residents, and result in billions of dollars in losses for the California economy. He stated that California is the largest manufacturing state in the U.S., and the tariffs imposed by the Trump administration represent the largest tax increase in modern U.S. history, with no state being impacted more than California. The lawsuit filed in the Northern District Federal Court of California will request the court to declare the tariffs imposed by the Trump administration invalid and to prohibit their enforcement. Trump's use of the International Emergency Economic Powers Act to establish tariff policies is illegal and unprecedented.
California is the largest importing state in the United States, and the current Trump tariff policy is causing widespread dissatisfaction within the U.S. Several small U.S. companies have also united to sue the government in the U.S. International Trade Court, arguing that the U.S. government has no authority to announce comprehensive tariff increases without Congressional approval, and they demand to stop the government from implementing tariff measures based on the International Emergency Economic Powers Act. The International Emergency Economic Powers Act does not authorize the U.S. president to implement comprehensive tariff measures, and it does not even contain provisions for imposing tariffs. The companies that initiated the lawsuit have been severely affected by the tariff increases. Federal Reserve Chairman Powell has issued a strong warning about the inflationary effects of Trump's trade policy. He stated that Trump's tariffs are very likely to temporarily stimulate an increase in inflation and warned that these effects could last a long time.