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California’s Governor Gavin Newsom and Attorney General Rob Bonta have initiated a federal lawsuit against the Trump administration concerning the legality of tariffs imposed on various trading partners. The lawsuit alleges that Trump overstepped his authority under the International Economic Emergency Powers Act, which could significantly raise costs for Californians. This legal challenge marks the 14th such action against the administration in recent weeks, as Newsom aims to protect the state’s economy and address the negative impact of these tariffs on consumers and the manufacturing sector.

California — Governor Gavin Newsom and Attorney General Rob Bonta have filed a lawsuit in federal court against the Trump administration, challenging the legality of tariffs imposed by President Trump on various U.S. trading partners. The lawsuit contends that Trump overstepped his authority by utilizing emergency powers under the International Economic Emergency Powers Act (IEEPA), violating the fundamental principle of the separation of powers as enshrined in the U.S. Constitution.

Newsom’s administration argues that the tariffs, which include a 10% levy on goods from Mexico, Canada, and China, and a staggering 145% tariff specifically on China, represent one of the largest tax increases in U.S. history. According to Newsom, these tariffs are likely to lead to higher prices for consumers and disproportionately impact California, the leading manufacturing state in the country. The lawsuit marks the 14th legal challenge from California against the Trump administration within the past 14 weeks.

In a press conference addressing the lawsuit, Newsom criticized congressional Republicans for their lack of action in holding Trump accountable for his tariff decisions. He highlighted the need to represent not just Californians who are adversely affected by these tariffs but also Trump’s former supporters who may now be struggling due to the economic impact of these measures.

Despite Newsom’s actions, Trump has defended the tariffs, claiming they are essential in addressing the United States’ trade deficits and asserting that the country is experiencing financial benefits from these tariffs. A White House spokesperson responded to Newsom’s lawsuit by suggesting that the governor is sidestepping critical issues facing California, including crime and homelessness, while also supporting measures that impact the economy negatively.

In a related initiative, Governor Newsom proposed a $7.5 billion federal tax incentive aimed at rejuvenating California’s film industry. This proposal arises amidst discussions about potential 100% tariffs on foreign films, a move Trump has hinted at amidst accusations that films made abroad represent a national security threat due to their potential for “messaging and propaganda.”

This new film incentive proposal seeks to counteract the trend of film jobs relocating overseas, prompted by foreign subsidies that are attracting productions away from the U.S. The existing film incentive program in California is valued at $330 million, but Newsom has expressed intentions to significantly increase this figure to foster domestic production.

Newsom’s film tax incentive plan is rooted in an existing program that has generated over $26 billion since it was launched in 2009. The California film industry is critically important to the state’s economy, particularly as it now ranks as the fourth-largest economy in the world, with a GDP of $4.1 trillion. Following Trump’s statements regarding tariffs on films, prices of several media companies’ stocks have noticeably declined, reflecting market uncertainty and concern regarding potential retaliatory measures in the industry.

California remains committed to engaging with the Trump administration to enhance film production within the state, despite Trump’s public criticism of Newsom’s capabilities in managing California’s film industry effectively. As the legal showdown continues, both state leadership and the film community are watching closely to see how these developments will unfold and what impacts they may carry for California’s economy.

California Challenges Trump Administration Over Tariffs

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Author: HERE Huntington Beach