Politico: Judge dismisses California's lawsuit over US president’s "Liberation day" tariffs

A US District Court judge has dismissed California’s lawsuit challenging US President Donald Trump’s tariffs, ruling that the case must be handled by a specialised trade court in New York rather than in California’s federal courts.

In a decision issued on June 2, Judge Jacqueline Scott Corley of the Northern District of California concluded that the lawsuit — brought by Governor Gavin Newsom and Attorney General Rob Bonta — falls under the jurisdiction of the US Court of International Trade. However, instead of transferring the case, Corley dismissed it outright, allowing California officials to pursue an appeal in the 9th US Circuit Court of Appeals, Caliber.Az reports via Politico.

The ruling marks a procedural victory for the Trump legal team, which had argued that trade matters are exclusively handled by the Court of International Trade to ensure consistency in tariff-related rulings across the country. Corley had previously indicated that her court likely lacked authority over the matter. 

The lawsuit, filed in April, made California the first state to challenge Trump’s so-called “Liberation Day” tariffs. State officials argued that the president had overstepped his authority under the International Emergency Economic Powers Act by imposing tariffs without congressional approval. Trump had justified the move by declaring a national emergency tied to the United States’ trade deficits.

Despite the ruling, California Attorney General Rob Bonta and Governor Gavin Newsom emphasised that the case was dismissed on procedural grounds and vowed to continue their legal fight.

“We strongly believe this case belongs in federal district court and are pleased the court considered our wishes in dismissing this case so we have the opportunity to seek review,” Bonta said in a statement.

Tara Gallegos, a spokesperson for Newsom, highlighted that the D.C. district court reached a different conclusion in a similar case just last week. 

“Multiple courts have ruled against President Trump’s use of emergency powers to enact these unlawful tariffs,” she said.

California has already filed an appeal of Corley’s decision, continuing a broader legal battle over presidential authority and trade policy.

While the ruling was a blow to California’s immediate case, Democratic leaders nationwide have pointed to recent federal court decisions that found Trump exceeded his executive powers.

“It’s raining tacos today,” Newsom said on the MeidasTouch Podcast on May 29, referencing the acronym TACO, which some Wall Street investors use to mock the volatility of Trump’s trade policies. The term, short for “Trump always chickens out,” has reportedly irritated the president.

By Sabina Mammadli