The United States Department of Commerce places California as the first importer in the country: in 2024 it acquired external goods for 491,478 million dollars. In exports, the State occupies the second place with 183,343 million, figures that reinforce the Newsom alarm before Trump’s tariff climb.
Newsom’s strategy
Newsom, determined to shield the State, ordered its administration to develop new strategic commercial associations with allied countries, seeking to protect manufacturers, farmers and Californian consumers. “California is not Washington,” says the governor.
In this offensive it urges its historical commercial partners to exclude the assets manufactured in California from reprisals and reaffirm the State’s commitment to a fair, open and reciprocal trade.
The Newsom administration also draws a plan that drives job creation and innovation in industries exposed to cross -border trade; It ensures stability to companies and workers harmed by federal measures and guarantees the supply of critical supplies, including the construction materials that support the reconstruction after the fires that the angels devastated.
From the legal part, the legal response of the State was immediate and forceful. Newsom and Attorney General Rob Bonta filed a federal lawsuit argued that President Trump lacks authority to impose unilaterally tariffs against Mexico, China and Canada, nor to create a 10%general tariff. The use by the President of the International Economic Emergency Powers Law (IEEPA) to promulgate tariffs is illegal and unprecedented.
The claim seeks that the courts declare these measures illegal, and is based on the doctrine of important issues of the Supreme Court, which requires a clear legislative approval for significant economic actions.
The precedent established by the Court can invalidate tariffs and avoid additional damage estimated at hundreds of billions of dollars.
Commercial partners with tariffs
Mexico, Canada and China represent more than 40% of California imports, with goods valued at more than 203,000 million dollars in 2024.
China is the main provider of California, with imports valued at approximately 122,760 million dollars, which represent a quarter of the total imports of the State. Electronic, machinery and textile products are some of the most affected goods.
Mexico follows China as the second largest supplier, with imports close to 64,297 million dollars, essential in cars, electronic equipment and agricultural products.
Although Canada does not enter the three main import destinations, Newson sees it as another strategic market that has high tariffs, of 25% for products that do not meet T-MEC as well as Mexico.
Imports from Canada are valued at 16,267 million dollars, mainly in energy products, wood and industrial materials.
The tariff war not only hits critical imports, as components for the automotive industry and construction materials, indispensable for recovery after the devastating fires in Los Angeles, but also affects the stability of small and medium enterprises. More than 60,000 small California exporting companies are at direct risk due to these additional taxes.
Yale’s budget laboratory estimates that only in 2024 inflation will increase 2.3% due to Trump tariffs, which especially impact food and cars prices. Each American home will face additional costs close to $ 3,800 annually. California, with his immense domestic economy, will experience a particularly severe blow.
Sectors in check
The impact transcends economic figures and directly affects local employment. For example, California produces 76% of the world’s almonds, generates 110,000 jobs and contributes more than $ 9.2 billion to state GDP. International commercial reprisals endanger the viability of this sector and its fiscal contribution.
An analysis of the University of California warns that tariff measures can reduce up to 25% of California agricultural exports, which would represent losses of approximately 6,000 million dollars annually.
The California Public Policy Institute (PPPP) points out that tariffs negatively affect the competitiveness of California producers in global markets, increasing costs and reducing margins, especially in industries dependent on global supply chains.
The ports, pillars of Californian and national trade are also in the spotlight. The ports of Los Angeles and Long Beach, which manage more than 40% of imports in containers in the United States, anticipate a significant fall in commercial volumes. The potential consequences include the loss of thousands of jobs and the reduction of critical fiscal income to finance social and infrastructure programs.
Business leaders firmly support the position of the State. Jennifer Barrera, president of the California Chamber of Commerce, warned that these protectionist measures interrupt supply chains and increase costs for companies and consumers.
Rachel Michelin, representative of Californian retailers, emphasizes that current uncertainty is unsustainable, especially for small businesses that face the definitive closure.
To counteract the crisis, Newsom emphasizes the importance of maintaining and expanding global alliances. California has more than 30 international agreements signed in recent years, and underpin cooperation in clean energy, technology and commerce.
While the courts review the case, California is committed to their capacity for economic resilience demonstrated in previous crises. The State seeks to maintain its reputation as a reliable and stable commercial partner, although the shadow of Trump’s tariffs will continue to be a latent threat, challenging the robust economy of the Golden State.
