California sued President Donald Trump and members of his administration Wednesday to stop the import tariffs levied under a 1977 law, saying the statute doesn’t give the president the emergency powers he used to justify the action.
The lawsuit filed in the U.S. District Court for the Northern District of California asks the judge to find the tariffs unlawful and void them. The complaint says the International Economic Emergency Powers Act doesn’t authorize the use of tariffs.
Trump used IEEPA for a range of his tariffs, including the reciprocal tariffs that he ordered on April 2 and paused a week later. But a 10 percent baseline tariff remains in effect, as does a 145 percent tariff on goods imported from China.
The lawsuit says the power to impose tariffs lies with Congress. “No President has previously relied on IEEPA to impose tariffs in the half a century since its enactment,” the suit states.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs. We’re standing up for American families who can’t afford to let the chaos continue,” California Gov. Gavin Newsom said in a joint statement with Attorney General Rob Bonta.
“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said. “Californians are bracing for fallout from the impact of the President’s choices — from farmers in the Central Valley, to small businesses in Sacramento, and worried families at the kitchen table — this game the President is playing has very real consequences for Californians across our state.”
Trump singled out use of the IEEPA early. He used it to impose 25 percent tariffs on Mexico and Canada, with a 10 percent carve-out for energy products and potash. But his tariffs also left confusion after the president flip-flopped on its effective date. They are now in effect with an exemption for products shipped under the 2020 U.S.-Mexico-Canada Agreement on trade.
The suit says that California, as the fifth-largest economy in the world, as well as the rest of the country, will be harmed because of the tariffs.
“All will face higher costs due to the 10 percent universal tariffs now in effect on virtually all imported goods and the substantial additional tariffs imposed on Chinese, Mexican, and Canadian goods, with even higher costs threatened by the still-looming reciprocal tariffs,” the lawsuit says.
The lawsuit noted that the U.S. equity market lost $6.6 trillion in value in the days after Trump’s April 2 announcement.
“And certain industries and businesses, including agriculture and entertainment, now face retaliatory tariffs imposed by China and threatened by other countries,” the lawsuit says.
China retaliated by slapping a 125 percent tariff on U.S. goods, although its Finance Ministry said it won’t raise its tariffs higher even if the Trump administration does.
The European Commission approved “countermeasures” on about $24 billion goods and services in response to the 25 percent steel and aluminum tariffs, but the commission decided to hold off on imposing the tariffs until July 14 after Trump paused the reciprocal tariffs. July 14 would be shortly after the end of the 90-day pause.
Canada has enacted three actions to respond to Trump’s tariffs: 25 percent tariffs on $30 billion of U.S. goods, effective March 4; 25 percent tariffs on $30 billion in steel, aluminum and other imported goods, effective March 13; and 25 percent tariffs on non-USMCA-compliant goods. This is on top of a grassroots effort by Canadian consumers and shop owners to boycott American products.
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