California filed a federal lawsuit Wednesday against President Donald Trump, becoming the first state to legally challenge the administration's sweeping tariff regime. The suit argues that Trump unlawfully invoked emergency powers to impose massive trade levies that threaten California's economy, industries, and families.
"Donald Trump does not have the authority to unilaterally impose the largest tax hike of our lifetime with his destructive tariffs," Gov. Gavin Newsom wrote on X. "We're taking him to court."
The lawsuit, filed in the U.S. District Court for the Northern District of California, contends that Trump's use of the International Emergency Economic Powers Act (IEEPA) to implement tariffs without congressional approval is "unlawful and unprecedented." The state seeks a court order declaring the tariffs void and directing federal agencies, including the Department of Homeland Security and U.S. Customs and Border Protection, to halt enforcement.
California Attorney General Rob Bonta called the policy "chaotic and haphazard," adding, "It's illegal." In a statement to NBC News, Bonta said, "Californians are bracing for fallout from the impact of the president's choices - from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table."
The legal action comes just weeks after Trump imposed a 10% blanket tariff on most imports and higher levies for select countries under what he called the "Fair and Reciprocal Tariff Plan." While most nations received a temporary 90-day pause, the administration has maintained a 25% tariff on imports from Mexico and Canada, and tariffs on Chinese goods have reached 145%.
California, the fifth-largest economy in the world, is particularly vulnerable to such measures. It is the top U.S. agricultural exporter and the second-largest state exporter overall. The state's commerce relies heavily on trade with Mexico, Canada, and China-three of the hardest-hit by Trump's escalating trade actions.
"President Trump's unlawful tariffs are wreaking chaos on California families, businesses and our economy, driving up prices and threatening jobs," Newsom said.
According to the complaint, California's imports from targeted countries and its nearly $24 billion in agricultural exports are at risk. Officials say the state's industries, including electronics, wine, nuts, tomatoes, and rice, will face increased costs and retaliation from foreign trading partners.
Newsom and Bonta announced the suit during a joint press conference held in California's Central Valley, where farmers are reportedly among the first to experience the effects of foreign tariff retaliation.
