Californian leaders to sue Trump over tariffs over fears of economic harm

The US state of California is suing the Trump administration over its use of presidential powers to impose tariffs they claim are illegal and harmful to the economy. The lawsuit challenges the administration’s application of the International Emergency Economic Powers Act of 1977 (IEEPA), which President Trump has used to issue a series of executive orders imposing tariffs without congressional approval since February.

Attorney General Rob Bonta and Governor Gavin Newsom of California, which is the country’s top importer and second-largest exporter, argue that these tariffs could shrink the US economy by $100 billion annually, Caliber.Az reports citing Bloomberg.

They warn that this would raise inflation by 1.3%, and cost the average American family around $2,100. Bonta criticised the tariffs as "chaotic," "haphazard," and unlawful, emphasising California’s significant role in the global economy as the fifth-largest economy in the world.

The legal complaint maintains that the Constitution grants Congress, not the president, the authority to impose tariffs and contends that IEEPA does not authorise the executive branch to take such actions unilaterally. The state is seeking a court ruling to invalidate the tariff orders and stop their enforcement by the US Department of Homeland Security and US Customs and Border Protection.

Specifically, the lawsuit targets Trump’s 25% tariffs on imports from Mexico and Canada, a 10% universal tariff on other trade partners, and tariffs as high as 145% on Chinese goods. China has responded with retaliatory tariffs of up to 125% on US exports.

California claims that its ports, small businesses, and agricultural producers are particularly vulnerable to the economic fallout and retaliatory trade measures resulting from these tariffs. The state argues that the Trump administration’s trade strategy undermines both domestic economic stability and international trade relationships.

The legal action is the latest response in a series of reactions Washington's aggressive adjustments to its international trade policies have caused in recent weeks. The announcement of higher tariffs imposed on both specific countries and industries likewise has not only led to outrage on the diplomatic level, but financial markets have responded with high volatility, with both the US dollar's exchange rate and major stocks experiencing a shake-up. On the diplomatic front, the announcement caused many countries to offer the Trump administration favourable conditions on bilateral issues in other spheres, both economic and geopolitical.

By Nazrin Sadigova