California became the first US state on Wednesday to sue President Donald Trump because of his use of tariffs.
“Today, I announced a lawsuit on behalf of the State of California, suing the Trump administration,” Gov. Gavin Newsom said in a video after filing the lawsuit in federal court that targeted Trump’s use of the International Economic Emergency Powers Act (IEEPA) to impose tariffs without congressional approval.
“California is the largest manufacturing state in our union, one of the largest trading partners around the globe. No state will be impacted more than the State of California, as it relates to the unilateral authority that’s been asserted by the Trump administration to impose the largest tax increase in modern American history”, he added.
California, the world’s fifth-largest economy, said key industries from Silicon Valley to agriculture stand to lose billions due to disrupted trade. The lawsuit mirrors a similar legal challenge earlier this week from US businesses.