California has escalated its legal fight against U.S. President Donald Trump’s sweeping tariff policies. On Tuesday, the state filed a motion for a preliminary injunction aiming to immediately block what it calls “illegal tariffs” while the lawsuit proceeds.
Governor Gavin Newsom and Attorney General Rob Bonta argue that the tariffs are causing significant economic harm. They project losses of $25 billion for California consumers and the elimination of more than 64,000 jobs.
“Last fall, Americans at the voting booth demanded lower prices. Now, Trump’s chaotic tariff war is threatening to skyrocket the cost of living for families, lower wages, slash jobs, and throw business owners and innovators into a spiral of uncertainty,” Bonta said in a statement.
The lawsuit, filed in the U.S. District Court for the Northern District of California, centers on whether Trump exceeded his presidential authority by invoking the International Emergency Economic Powers Act to impose tariffs without congressional approval.
“President Trump has overstepped his authority, and now families, businesses, and our ports are literally paying the price,” Newsom stated. “As the largest economy in the nation, California has the most to lose from President Trump’s weak and reckless policies.”
The financial impact extends beyond consumer prices. Officials pointed to downgraded economic projections for the 2025-2026 state budget, reflecting increased unemployment and near-term inflation directly linked to tariff-related uncertainty.
Small businesses, especially in minority communities, are facing significant challenges. “As tariffs continue to drive up costs and disrupt supply chains, it’s our local small businesses—especially those owned by Latino entrepreneurs—that are being hit the hardest,” said Cathy Rodriguez-Aguirre, president of the Sacramento Hispanic Chamber of Commerce.
California’s agricultural industry is also under strain from retaliatory tariffs imposed by trading partners.
The court has not yet scheduled a hearing date for the preliminary injunction. Legal experts suggest the case could eventually reach the U.S. Supreme Court, raising broader constitutional questions about the scope of presidential authority over trade policy.
California isn’t alone in this legal challenge. On the same day, five American small businesses asked the U.S. Court of International Trade to halt Trump’s tariffs, arguing he overstepped his powers by declaring a national emergency to impose taxes on imports.
“Trump’s interpretation would allow him to impose tariffs at any rate, at any time, simply by declaring a national emergency,” said Jeffrey Schwab, a lawyer representing the plaintiffs.
