California vs Trump: Newsom's Bold Plan to Bypass Tariffs and Save the State's Economy
California Governor Gavin Newsom has launched a proactive strategy to counter President Donald Trump's sweeping new tariffs by seeking direct trade partnerships with foreign governments. As reported by Fox News and corroborated by the San Francisco Chronicle and Los Angeles Times, Newsom is urging global allies to exempt California-made goods from retaliatory tariffs aimed at the U.S.
With over $675 billion in annual trade and ranked as the world’s fifth-largest economy, California’s exposure to international commerce is massive. Newsom’s move comes as Trump reintroduces a baseline 10% tariff on all imports and enforces additional levies on key partners: 34% on China, 25% on South Korea, 24% on Japan, and 20% on the EU. Canada and Mexico are exempt from this new wave, though older tariffs remain in place.
Trump defends his tariffs as a bold step toward "economic independence," claiming they will rebalance a $1.2 trillion trade deficit. However, markets responded negatively, recording their worst day since 2020, while China swiftly retaliated with 34% tariffs of its own.
Governor Newsom, in a video statement posted to X (formerly Twitter), stated: “Donald Trump's tariffs do not represent all Americans... California remains a stable and reliable global trading partner.” He added that his administration is exploring new trade opportunities to protect Californian jobs and industries.
According to a UC Davis study, the state’s almond industry—valued at $4.7 billion and supporting over 100,000 jobs—is highly vulnerable, potentially facing up to $875 million in losses due to retaliatory measures. Likewise, sectors like manufacturing, wine, and dairy are bracing for cost hikes and supply chain disruptions.
The impact extends beyond exports. Tariffs on critical materials like Canadian lumber could impede California's recovery from recent wildfires, while import taxes on canola and glass could spike food and alcohol prices across the state.
Meanwhile, economists like Jock O'Connell warn of job losses in ports and supply chains across Los Angeles and the Inland Empire, where over 300,000 people are employed in manufacturing. In 2023 alone, California exported nearly $160 billion in manufactured goods, including electronics, machinery, and chemicals—now all potential targets of foreign tariffs.
Analysis from the Yale Budget Lab projects a 2.3% rise in inflation due to the new tariffs, with food costs expected to jump 2.8% and auto prices by a staggering 8.4%, costing the average U.S. household around $3,800 this year.
Newsom’s message to the world is clear: while Washington may embrace isolationism, California remains open for business.