Newsom launches lawsuit after 145% tariffs hammer California’s small businesses

Sacramento, California – California Governor Gavin Newsom took to TikTok on Monday to deliver a blunt message about the economic toll of the Trump administration’s trade policies, warning that no state is more vulnerable to the impacts of the former president’s tariffs than California.

“The bad news is there’s no state in America that is more impacted by uncertainty and these tariffs imposed unilaterally by Donald Trump and the Trump administration,” Newsom said during the livestream. “Today, we’ll be exploring the impacts — real-life impacts on real people — from Montana to Minnesota to here in the great state of California.”

The virtual event, which drew more than 15,000 live viewers, featured small business owners from across the state who shared their struggles navigating a turbulent economic landscape. The conversation focused on how recent tariff increases, including a sweeping 10% baseline tax on all imports and up to 145% tariffs on Chinese goods, have disrupted operations, cut into profit margins, and cast uncertainty over investment decisions.

Newsom, who mostly gave the floor to business owners during the livestream, said his goal was to listen. “We’re going to work our tail off to try to curtail the impacts of these tariffs and the lack of understanding of the damage they’re doing to communities like yours,” he said in response to one business owner.

Among the participants was Jennifer Gold, who owns the Grounded Bodyworks day spa in Palm Springs. “We’re still recovering from the pandemic,” Gold said. “For many of us, it’s fragile, and these tariffs can be the thing that pushes us over the edge.”

In Crescent City, Jennifer Schmidt, owner of Schmidt’s House of Jambalaya, expressed concern about dwindling tourism due to increased costs and global uncertainty. “It’s a huge portion of the state that is going to feel and reel from the effects of a lack of people wanting to come here directly because of the tariffs,” she said.

The town hall followed Newsom’s recent legal and diplomatic efforts to shield California from the fallout of international trade disputes. Earlier this month, Newsom and California Attorney General Rob Bonta filed a lawsuit against the Trump administration, challenging its authority to impose tariffs via a national emergency declaration.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in a statement announcing the suit. “We’re standing up for American families who can’t afford to let the chaos continue.”

Newsom’s pushback against Trump’s trade policies comes just days after California was declared the world’s fourth-largest economy, with a $4.1 trillion GDP. Despite the milestone, the governor warned that the state faces mounting pressure from global economic forces beyond its control.

The TikTok town hall is part of a broader, unorthodox communication campaign by Newsom, who recently launched a podcast titled This Is Gavin Newsom. In it, he speaks with figures across the political spectrum. He often returns to themes of entrepreneurship, economic equity, and the challenges facing small businesses — issues he says he relates to as a business owner himself.

“We can’t afford to stay silent when the livelihoods of millions are at stake,” Newsom said.