California: California Attorney General Rob Bonta and California Governor Gavin Newsom sued in federal court, contesting US President Donald Trump’s power to impose broad tariffs. In a complaint filed in the US District Court for the Northern District of California, Newsom and Bonta are asking the court to deem Trump’s tariffs invalid and prevent their implementation.

According to the complaint, California would suffer immediate and irreversible injury if Trump were to unilaterally apply tariffs under the International Emergency Economic Powers Act.

The statement released on Wednesday said, “Governor Gavin Newsom and California Attorney General Rob Bonta today filed a lawsuit in federal court challenging President Trump’s use of emergency powers to enact broad-sweeping tariffs that hurt states, consumers, and businesses.”

“The lawsuit argues that President Trump lacks the authority to unilaterally impose tariffs through the International Economic Emergency Powers Act, creating immediate and irreparable harm to California, the largest economy, manufacturing, and agriculture state in the nation,” it said.

The statement claims that these tariffs have damaged California’s economy to the tune of billions of dollars, thrown off supply chains, and increased prices for the state and its citizens.

“President Trump’s illegal tariffs are wreaking havoc on California families, businesses, and our economy—raising prices and threatening jobs,” Newsom added in the statement. We are advocating for American families that cannot afford to remain in the midst of the upheaval.

According to Rob Bonta, Trump’s tariff policy is “deeply troubling and illegal.” According to him, Californians are preparing for the consequences of the decisions taken by the US president.

“The President’s haphazard and disorganized tariff implementation is not only very concerning, but it is also against the law. California, which has the fifth-biggest economy in the world, is aware that international trade policy is serious business. From farmers in the Central Valley to small companies in Sacramento to anxious families around the kitchen table, Californians are preparing for the repercussions from the President’s decisions. This game the President is playing has very serious ramifications for Californians across our state. In a statement, Bonta said, “I am honored to stand with Governor Newsom in defense of California’s thriving economy, companies, and citizens.

According to the release, “The lawsuit contends that President Trump is not authorized to unilaterally impose tariffs against Canada, China, and Mexico or establish a 10% tariff that applies to all countries.” It is illegal and unheard of for the President to impose tariffs under the International Economic Emergency Powers Act (IEEPA).

If Trump declares a national emergency in response to a foreign national security, foreign policy, or economic danger, the IEEPA gives him the authority to take certain steps. The statute, which was passed by Congress in 1977, outlines a wide range of options for the president. Tariffs are not one of them, however. According to the statement, the US president has really attempted to use this statute to apply tariffs for the first time.

The action, according to the statement, “involves the significant issues theory of the United States Supreme Court, which maintains that the executive branch and federal agencies must obtain explicit and explicit authorization from Congress in unique situations of enormous economic and political consequence.

The Court has used this standard in recent years to invalidate significant programs, such as President Biden’s student loan forgiveness program and President Obama’s Clean Power Plan, holding that new executive actions that have significant effects on the national economy cannot be justified by ambiguous statutory authority.

Donald Trump levied retaliatory tariffs on dozens of nations with whom the United States has a trade imbalance earlier this month. Later, he decided to pause the tariffs for 90 days after many countries initiated talks with the US administration for a trade deal.

The White House published a fact sheet stating that the retaliatory measures of China have led to a tax of up to 245% on U.S. goods. Before the most recent amendment, Chinese exports to the US were subject to a 145% tax.

In order to combat non-reciprocal trade agreements and restore justice in US commercial ties, Trump released the “Fair and Reciprocal Plan” on trade. Trump’s reciprocal tariffs have led to a broad-based fall in financial markets globally, with markets plunging in Asia and Europe. The reciprocal tariffs have set off a sell-off in equities globally, and the US itself is no exception.

Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasizing that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.