California Governor Gavin Newsom has issued a stark warning about the “real” and “serious” consequences of recent high tariffs, describing the situation as a “code red” economic emergency for the state.
In an advertisement posted online on Friday, Newsom highlighted how California, now the world’s fourth-largest economy, has thrived by reducing trade barriers. “Innovation, manufacturing, agriculture. And we’ve done it by reducing trade barriers and delivering for American consumers,” he said.
However, he expressed concern that current trade policies are jeopardizing this success. “But the Trump administration is putting all of that at risk, halting delivery of essential goods through our ports. Today, it’s school backpacks. In a few months, it’ll be Christmas toys,” Newsom warned.
In an interview released on Saturday, the governor explained that he aired the advertisement on a conservative news channel to ensure the administration understands the impacts of these policies. He painted a grim picture of the economic fallout, noting significant declines in cargo volumes at major California ports.
“The Port of Oakland in northern California has suffered a 20% decline in cargo volumes, while the ports of Long Beach and Los Angeles in southern California have reported a 35% drop, with cargo bookings plummeting by 60%,” Newsom reported.
He emphasized that these issues cannot be quickly resolved. “It takes weeks and weeks for decisions made overseas and purchase orders to go into effect before products end up on the shelves. Decisions being made today—or indecision around making commitments—will have a profound impact on tomorrow,” he said.
Newsom also criticized the unpredictability of the tariff policies. “If you want to impose tariffs to bring manufacturing and industrial policy back to the United States, they have to be predictable. You need stability. You must send a signal to small business owners that this approach is here to stay,” he argued. “But every few hours, every news cycle, there’s another zig and zag. It’s chaotic. There’s no rhyme or reason.”
California has been particularly affected by the high tariffs, being the first U.S. state to file a lawsuit against the federal government over tariff-related issues. Newsom’s warning serves as a call to action to address the economic challenges and stabilize trade policies to protect the state’s economy.
