California Governor Gavin Newsom said his state will file a lawsuit challenging US President Donald Trump’s authority to impose sweeping tariffs that have sparked a global trade war.
The lawsuit will argue that Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and China or a 10 per cent tariff on all imports is illegal. That law allows the president to freeze and block deals in response to foreign threats.
The lawsuit, which will be filed in the US District Court for the Northern District of California, will also argue that Congressional approval is required to impose such tariffs, Newsom’s office said.
California’s decision follows the Trump administration’s rapidly changing tariff plans.
Newsom said the current tariffs have led to inflated costs and billions of dollars in damage in California, which has the largest economy among US states and is a major exporter.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Mr. Newsom said in a statement. “We’re standing up for American families who can’t afford to let the chaos continue.”
Newsom will discuss the lawsuit with California Attorney General Rob Bonta later Wednesday in the farm-rich Central Valley. California is a hub for agriculture, and many of the nuts, fruits and vegetables grown in the state are destined for other countries.
The state will ask the court to block the tariffs immediately. The announcement came days after Newsom asked countries to exempt California exports from retaliatory tariffs.
Trump has previously made many arguments in favour of raising the tariffs, including that they are designed to boost US manufacturing and stem the flow of the drug fentanyl into the country.
