California Gov. Gavin Newsom announced the state’s resistance against President Donald Trump’s tariffs, vowing to form alliances with nations considering retaliatory actions against the U.S. and advocating for the exemption of California-made products from such measures.
In a statement directed at international partners, Newsom reassured California’s commitment to being a dependable economic partner amidst the instability arising from Washington, distinguishing California from the federal government’s policies.
Driving the news: Trump’s tariff proposal introduced a 10 percent baseline tariff for all nations and higher rates for specific countries targeted due to perceived unjust trade relationships with the U.S., prompting Newsom’s response to safeguard California’s economic interests.
- Newsom’s strategy aligns with a historical trend of California governors leveraging the state’s economic influence to pursue independent global trade initiatives, such as former Gov. Jerry Brown’s climate change agreements with China.
- California’s substantial economic impact and extensive trade connections with major partners like Mexico and Asian countries grant it the ability to shape domestic manufacturing and international trade.
Go deeper: Citing California’s position as home to 32 of the world’s top 50 AI companies and a quarter of global AI patents and papers, Newsom underscored the state’s influential role in the field of artificial intelligence, alluding to its alignment with U.S. goals in AI leadership.
- Governor Newsom stressed California’s vulnerability to the potential consequences of the tariffs, citing its leadership in various sectors, including venture capital, new business startups, Fortune 500 companies, manufacturing and agriculture, which could be adversely affected by the tariffs.
- The governor’s office outlined plans to leverage foreign trade partnerships to bolster job creation, innovation in trade-heavy industries and support businesses and workers impacted by federal policy.
What he’s saying: “California leads the nation as the #1 state for agriculture and manufacturing – and it’s our workers, families, and farmers who stand to lose the most from this Trump tax hike and trade war,” Newsom said in a statement. “To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come, no matter the turbulence coming out of Washington. California is not Washington, D.C.”
