CALIFORNIA BECOMES FIRST STATE TO SUE TRUMP ON TARIFFS

News Desk World

Wed 16 April 2025:

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.

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Trump tariffs could cut world trade by up to 1.5 percent: WTO

The World Trade Organization (WTO) is warning today that global goods trade is expected to fall anywhere between 0.2 and 1.5 percent this year, depending how Trump’s tariff policy plays out.

The organisation warned that the uncertainty surrounding trade policy could have “severe negative consequences for the world”.

It said world merchandise trade was currently set to fall 0.2 percent in 2025, but that “severe downside risks” surrounding tariffs “could lead to an even sharper decline of 1.5 percent”.

Trump has imposed tariffs on aluminium, steel and auto imports, wide-ranging tariffs on Mexico and Canada, and a 10 percent tariff on all trade partners. However, he has paused more country-specific tariffs – some as high as 50 percent – for 90 days pending talks on new bilateral agreements.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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