California Governor Gavin Newsom announced that he has instructed his administration to “look at new opportunities to expand trade” as he works to protect the state from President Donald Trump’s new import tariffs.
In a post on X, Newsom made a direct appeal to global trading partners: “To our trading partners around the globe — California is here and ready to talk. We will not sit idly by during Trump’s tariff war. We make up 14% of the US GDP. We’re the 5th largest economy in the world. We’re not scared to use our market power to fight back against the largest tax hike of our lifetime.”
This statement comes after a Fox News report revealed that Newsom is pushing California to create “strategic” trade relationships with countries that are imposing retaliatory tariffs on the U.S. He is urging those countries to exclude California-made products from these new taxes.
White House spokesperson Kush Desai responded by telling Fox News that Newsom should focus on issues like homelessness, crime, and affordability in California, rather than trying to strike international trade deals.
On Wednesday, the White House introduced a 10 percent tariff on all imports, including those from U.S. allies and less economically active regions. They also raised tariffs on countries with large trade surpluses against the U.S.
The new tariffs include a 34 percent tax on imports from China, 20 percent on goods from the European Union, 25 percent on imports from South Korea, 24 percent from Japan, and 32 percent from Taiwan. Mexico and Canada are exempt from these new tariffs, though the 25 percent tariffs Trump imposed on them last month will remain in effect.
Trump’s announcement caused a sharp drop in the stock market, with Wall Street seeing its worst day since 2020. In response, China imposed a 34 percent retaliatory tariff, signaling the start of a potential trade war that could severely affect both imports and exports. Other countries are also considering similar actions.
Amid this uncertainty, the Newsom administration is particularly concerned about the impact on California’s almond industry, a major agricultural exporter. Countries like China, India, and the European Union may impose tariffs, potentially costing California billions of dollars.
A Newsom official also warned that the new tariffs could make it more difficult to access key supplies, such as construction materials, needed to rebuild after the Los Angeles wildfires. The U.S. currently places a 14 percent duty on Canadian lumber, and that could rise to nearly 27 percent this year.
State officials are also concerned about the impact of retaliatory tariffs on supply chains between California and Baja, Mexico. They argue that taxing goods every time they cross the border will raise final product prices, which would ultimately hurt Californians.
As the world’s fifth-largest economy, California plays a key role in the U.S. economy. It is the largest importer and second-largest exporter among U.S. states, with more than $675 billion in two-way trade. Because of this, the new tariffs could have a significant impact on California businesses, disrupt global supply chains, and put pressure on important industries in the state.
Trump’s tariffs are set to take effect between April 5 and April 9.
Watch Newsom’s announcement below:
TO OUR TRADING PARTNERS AROUND THE GLOBE — California is here and ready to talk.
We will not sit idly by during Trump’s tariff war.
We make up 14% of the US GDP. We're the 5th largest economy in the world.
We’re not scared to use our market power to fight back against the… pic.twitter.com/yTfbcWW1sO
— Gavin Newsom (@GavinNewsom) April 4, 2025
