Gavin Newsom applauds court ruling striking down Trump’s unlawful tariffs

Sacramento, California – A federal court ruled Tuesday that former President Donald Trump exceeded his legal authority when he imposed sweeping tariffs under the guise of emergency powers—an outcome that California Governor Gavin Newsom called a “vindication” of his state’s legal stance.

“Like we said when we filed our lawsuit: These tariffs are illegal, full stop,” Newsom said in a statement following the ruling. “The court agreed today that Donald Trump overstepped his authority with his unlawful tariffs, which have created chaos and hurt American families and businesses.”

The decision came as part of a case brought by private parties and several states. Though it stemmed from a separate lawsuit, the court’s findings align with arguments laid out in California’s own April 16 lawsuit, filed by Newsom and Attorney General Rob Bonta. That suit argues that Trump lacked the authority to unilaterally impose tariffs under the International Economic Emergency Powers Act (IEEPA), a 1977 law never before used to justify trade duties.

The IEEPA grants the president emergency powers to respond to foreign threats. Still, legal experts and courts increasingly question whether that authority extends to tariffs—an issue with vast economic implications. Under the legal principle known as the “major questions doctrine,” the Supreme Court has ruled that sweeping economic measures must have explicit congressional authorization. Recent cases applying the doctrine have blocked initiatives from both Democratic and Republican administrations.

Tariffs enacted under Trump—particularly those targeting trade partners like Mexico, China, and Canada—have been widely criticized for driving up costs for American businesses and consumers. Even some of Trump’s political allies have pushed back. Senator Ted Cruz called tariffs “a tax.” Senator Rand Paul argued they “come straight out of the pockets of American consumers.” Conservative commentator Ben Shapiro called the strategy “wrongheaded,” and the U.S. Chamber of Commerce warned of broad economic harm.

California, home to more than 36,000 manufacturing firms and over 60,000 small business exporters, has been especially vulnerable. The state engaged in nearly $675 billion in two-way trade in 2024, and its top trading partners—Mexico, Canada, and China—were also primary targets of the tariffs. Nearly half of all goods imported into California come from these countries.

Newsom’s administration has worked to mitigate the impact by pursuing new trade partnerships and launching international campaigns to support sectors such as tourism and agriculture. But the damage, state officials say, has already been done.

With California’s economy larger than that of most countries and central to the U.S. manufacturing and agricultural output, the court’s decision is more than a symbolic victory—it’s a significant legal and economic turning point.