California’s economy has surged ahead of Japan’s, propelling the Golden State to become the fourth largest economy globally, as announced by Governor Gavin Newsom. With a nominal GDP of $4.1tn, California has surpassed Japan’s $4.02tn, positioning it behind the US, China, and Germany. Boasting a population of nearly 40 million, California is not only a hub for tech and entertainment, but also leads in US manufacturing output and agricultural production.

Governor Newsom attributes California’s economic success to investments in people, sustainability, and innovation, with a remarkable growth rate of 6% in 2024, outperforming the US, China, and Germany. Despite this achievement, Newsom expressed concerns about the Trump administration’s tariff policies, which he believes threaten California’s economic interests.

California recently made headlines by being the first state to legally challenge Trump’s tariffs, emphasizing the state’s significant financial contributions to the nation. Despite facing challenges like a housing crisis and fluctuations in tourism due to tariff wars, California remains resilient, launching campaigns to attract tourists and mitigate economic impacts.

In light of California’s economic prowess and contributions to the national economy, the state’s stance against harmful tariff policies underscores its commitment to protecting its economic stability and growth.