spoiler
California Governor Gavin Newsom said he has directed his administration to "look at new opportunities to expand trade" as he tries to steer his state around President Donald Trump's sprawling import tariffs.
What To Know
In a post on X, Newsom addressed the U.S.'s global trading partners, writing "California is here and ready to talk."
It comes after a Fox News report revealed that Newsom is directing his state to pursue "strategic" relationships with countries announcing retaliatory tariffs against the U.S., urging them to exclude California-made products from those taxes.
In response, White House spokesperson Kush Desai told Fox News: "Gavin Newsom should focus on out-of-control homelessness, crime, regulations, and unaffordability in California instead of trying his hand at international dealmaking."
On Wednesday, the White House imposed a 10 percent baseline tariff on all imports, including those from U.S. allies and non-economically active regions, along with higher rates for countries with large trade surpluses against the U.S. on Wednesday.
The tariffs include a 34 percent tax on imports from China, a 20 percent tax on imports from the European Union, 25 percent on South Korea, 24 percent on Japan and 32 percent on Taiwan. Mexico and Canada, from which most U.S. produce imports come, are exempt from Trump's latest tariffs, but the 25 percent tariffs that Trump levied on both countries last month will remain intact.
Trump's announcement sent the markets into turmoil on Thursday, with Wall Street recording its worst day since 2020, when Covid-19 was in full swing. Meanwhile, China hit back with a 34 percent retaliatory tariff on Friday, in the first signs of an all-out trade war that could cripple imports and exports. Other nations are now also mulling over retaliatory tariffs.
Amid the turmoil, the Newsom administration is concerned that California's almond industry, a key agricultural exporter, could lose billions of dollars, as countries like China, India, and the European Union impose retaliatory tariffs, Fox News reported.
A Newsom official also told Fox News that the new Trump tariffs will hinder access to essential supplies, like construction materials, needed to rebuild after the Los Angeles wildfires. The U.S. currently imposes a 14 percent duty on Canadian lumber, with the rate possibly rising to nearly 27 percent this year.
State officials also expressed concern that retaliatory tariffs will cause significant disruptions to supply chains between California and Baja, arguing that taxing goods each time they cross the border will raise final product prices, ultimately impacting Californians.
Why It Matters
California, the world's fifth-largest economy, plays a crucial role in driving U.S. economic growth. As the largest importer and second-largest exporter among U.S. states, with over $675 billion in two-way trade, it holds significant economic influence. Therefore, Trump's tariffs could have a major impact, potentially increasing costs for California businesses, disrupting global supply chains, and putting pressure on vital industries within the state.
What Happens Next
Trump's tariffs are set to go into effect between April 5 and April 9.
California? You mean the progressive, melting pot bastion with the world’s 4th largest economy?
Remind me again which state just voted to continue legalized slavery through the prison system?
Don't remind me :(
Yes, but the grunts guarding the slaves will be allowed to have a float on the pride parade
Progressive state that made it legal to kill the homeless. So progressive!
I liked it when the progressive state legislature didn't even bring a progressive single payer healthcare bill to a vote because they knew they would all have to publicly vote against it, progressively. That was very progressive.
"progressive" state which elected Arnold Schwarzenegger, the same "progressive" state which hates the homeless and has unaffordable housing, the "progressive" state with a Governor who invites right-wingers on his podcast like Bannon and Kirk.
"4th largest economy" is also a stretch since most of it is in difficult to measure services sector.
would love to see how much of California's "economy" is straight landlordism, VC bullshit/silicon valley scam banking, crypto, rent-seeking intellectual property licensing, and Hollywood accounting hoovering up tax breaks and public art supports from far flung geographies for filming on location for a week somewhere.
they throw their weight around a lot as being some kind of engine of economic activity (or cradle of innovation LMAO), but I think if you pull back the curtain, it's like 10 guys standing in a circle reaching into each other's pockets, double counting every "trade" while looting every public dollar and stomping the guts out of the broke motherfuckers trapped in the vortex.
the remaining 20% is oil
You missed the exploiting farm slaves. CA has a huge agriculture industry that uses both migrant and prison labor, with all the assorted agro-chem and water baronism.
Everybody who does this self-aggrandisement with the word 'progressive' is deeply unserious.
thinking the word progressive means anything, in the year of our LORD 2025. lol. lmao, even
sure i do mean that