California Governor Gavin Newsom has announced that his state will file a lawsuit challenging the powers of President Donald Trump. The official explained that the excessive tariffs imposed by the US leader not only harmed the state, but are also illegal. This is reported by UNN with reference to NewsWeek.
Details
According to the publication, Newsom claims that Trump's tariffs have resulted in billions of dollars in losses in California, the largest economy among US states.
The publication states that the lawsuit will argue that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on Mexico, Canada, China and a 10% basic tariff on all imports is illegal.
The law only allows the president to freeze and block transactions in response to external threats.
In the lawsuit, Newsom and California Attorney General Rob Bonta will also challenge Trump's ability to impose tariffs under IEEPA without congressional approval.
"President Trump's illegal tariffs are wreaking havoc on California families, businesses and our economy — raising prices and threatening jobs," Newsom said in a statement.
"The president's chaotic and unsystematic implementation of tariffs is not only deeply disturbing, it is illegal. As the fifth largest economy in the world, California understands that global trade policy is not just a game," said California Attorney General Rob Bonta.
The lawsuit will also argue that there is no state of emergency declared by Trump due to the threat of migrants and drugs illegally imported into the United States.
The lawsuit will be filed in the U.S. District Court for the Northern District of California, the Newsom office said, the publication said.
Additionally
California is the largest importer and second largest exporter among states with more than $675 billion in two-way trade. With the introduction of new tariffs, the state's ports, small businesses and agricultural sector will be severely affected.
This month, Newsom said he would order his state to maintain "strategic" relations with countries that have announced reciprocal tariffs against the United States, urging them to exclude California-made products from the levies.
Recall
Donald Trump announced a 90-day suspension of tariffs. He explained the decision by saying that "people were a little scared, so you should be flexible."
The US leader added that he was watching the bond market and for the past few days "everything looked pretty bleak".