Overview

• California filed the lawsuit in the U.S. District Court for the Northern District of California, marking the first state-led legal challenge to Trump's tariff policies.
• The suit argues that Trump exceeded his authority under the International Emergency Economic Powers Act, which does not explicitly grant the power to impose tariffs.
• Governor Gavin Newsom and Attorney General Rob Bonta contend that the tariffs are causing significant economic harm, including supply chain disruptions, inflated prices, and job threats across the state.
• California, the largest U.S. state economy, claims billions in damages due to the tariffs, which disproportionately impact its trade with key partners like China, Canada, and Mexico.
• The state is seeking an immediate court order to block the tariffs, arguing their implementation requires explicit congressional approval.