In a fiery legal counterpunch, California has hauled the Trump administration into federal court, accusing it of overstepping constitutional bounds with sweeping tariffs that threaten to upend global trade—and gut the state’s economy in the process.
The lawsuit, filed Wednesday in San Francisco, blasts the tariffs as reckless, unconstitutional, and economically disastrous. The Golden State argues that Trump invoked emergency powers meant for foreign threats—not for rewriting the rules of global commerce on a whim.
At the center of the legal storm: Trump’s imposition of a 10% tariff on all imported goods, with even steeper rates slapped on countries the administration deems “unfair” traders. China, in particular, got walloped with a punishing 145% tariff—though a few exceptions were carved out for electronics. In retaliation, Beijing fired back with its own 125% levy, and the European Union readied its response, though it’s currently on pause.
California, the largest port hub and importer in the nation, says it’s caught in the crossfire. According to the lawsuit, the state’s ports—handling 40% of U.S. imports—could be crippled. Billions in agricultural exports are on the line, thousands of jobs threatened, and investment is already being chilled by what the lawsuit calls a chaotic, unvetted policy rollout.
“The Constitution doesn’t give the president a free hand to tax the world,” the complaint argues, pointing out that Congress—not the White House—has tariff authority. The administration claims cover under the International Emergency Economic Powers Act (IEEPA), but California says the law doesn’t authorize a blanket economic rewrite based on trade deficits and declining domestic manufacturing.
And experts seem to agree.
“This doesn’t come close to the kind of ‘unusual and extraordinary threat’ the IEEPA was designed for,” said Stratos Pahis, a professor of international trade law. “These are long-standing economic trends, not national security emergencies.”
Despite the backlash, the White House is doubling down. Spokesman Kush Desai shot back at California’s leadership, saying Governor Gavin Newsom should be “focused on crime and homelessness” instead of meddling in federal trade policy.
But this isn’t the only lawsuit Trump’s tariffs have sparked. Challenges are already underway in courts from Montana to Florida. Business groups, small entrepreneurs, and even tribal governments are lining up to challenge what they view as an unlawful trade war dressed up in legal costume.
For now, California is leading the charge—framing the fight not just as a matter of law, but survival. A state that moves global markets isn’t willing to stand still while, in its words, the White House gambles with its future.