Despite a 1.6% rise in imports at LA ports, Gov. Gavin Newsom moves to sue the Trump administration over reciprocal tariffs, which his attorney general calls “not only deeply troubling, [but] it’s illegal.”
California Gov. Gavin Newsom announced April 16 that he is suing the Trump Administration over the legality of his reciprocal baseline tariffs, labeling the 145% tariff on China and lesser rates on other U.S. partners as an obstruction of federal law.
“No state is poised to lose more than the state of California,” Gov. Newsom protested during a press conference, convinced that the trade war will decimate the fifth-largest global economy without fail. “So that’s why we’re standing up.”
Upon the momentous “Liberation Day” festivities on April 2, the Trump administration rolled out a uniform 10% tariff on all imported goods point blank. When the majority of said tariffs were temporarily put on hold to permit time for negotiations, the U.S. doubled down onto China, who as of April 9 will now be tariffed up to 145%.
The reality is, the Golden Coast has actually been booming with imports. Stockpile orders arriving in Los Angeles surged 1.6% in March. When it comes to imported containers, trucking magnate Malkiat Chohan shared that “right now it would probably be about 65 to 70” per week, specifically in Oakland, twice his company’s usual haul.
“The most we [ports] are concerned about is China,” Chohan raised, as China makes up around 60% of those hauls. While Chinese exports increase, they soon may feel less inclined to buy Californian, deepening the wound of 7,500 job losses in CA in February.
With a 145% tariff surge shaking up the No. 1 importer to L.A. and Long Beach, Democrats and economists are sounding the panic button. “If Trump puts in these kinds of tariffs and we go into a trade war,” conjectured CNBC analyst Jim Cramer, “the likelihood of a recession is going to be very high.”
As part of his desire to “Trump-proof” CA, Newsom’s office is challenging the president’s authority to invoke the International Economic Emergency Powers Act to impose tariffs. State Attorney General Rob Bonta believes this was “not only deeply troubling, [but] it’s illegal.”
Newsom and Bonta railed on Trump’s economic strategy at the aforementioned press conference, claiming only Congress has the right to declare tariffs, and not the president per the IEEPA. “President Trump’s unlawful tariffs are wreaking chaos,” Newsom said Wednesday.
White House aide Kush Desai fired back at Newsom, making the case that this suit is an attempt to take the heat off of the governor amid “California’s rampant crime, homelessness, and unaffordability,” rather than giving Trump’s bargaining chip time to sink in.
An optimist, Chohan does not seem fazed. “Maybe this year is hard, after that it’s probably very good.” Like many seasoned working class Americans who have experienced their fair share of market highs and lows, he appears willing to ride the waves once more.
