California Governor Gavin Newsom and Attorney General Rob Bonta are set to sue President Donald Trump on April 16, challenging the imposition of tariffs under the International Economic Emergency Powers Act. The lawsuit argues that Trump’s unilateral tariffs are causing harm to California’s economy, businesses, and consumers. They highlight the detrimental impact on small business exporters, construction materials necessary for post-fire rebuilding, and farmers affected by retaliatory tariffs.

The suit invokes the Supreme Court’s major questions doctrine, maintaining that significant economic actions like imposing tariffs require explicit authorization from Congress. California officials contend that the International Economic Emergency Powers Act, enacted in 1977, does not grant the authority to implement tariffs, making Trump’s actions unlawful.

With California boasting a GDP of $3.9 trillion and a robust trade relationship with Mexico, Canada, and China, the state’s economy heavily relies on international trade. The lawsuit aims to halt Trump’s sweeping tariffs, which have already caused substantial economic losses. Newsom and Bonta emphasize the importance of challenging Trump’s tariff policies to safeguard California’s economy and trade relationships.

The lawsuit’s filing signals a potential Supreme Court showdown, as past cases invoking the major questions doctrine have led to significant initiatives being struck down. By challenging Trump’s tariff actions, California aims to protect its economy and trade partnerships from the adverse effects of unilateral tariff impositions.