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California Governor Gavin Newsom announced that the State is taking President Donald Trump’s administration to court over what he called a unilateral imposition of tariffs.
Newsom announced the lawsuit on behalf of California and said that no other State in the union would be as impacted as the “Golden State.”
“Donald Trump does not have the authority to unilaterally impose the largest tax hike of our lifetime with his destructive tariffs,” he said in an announcement on X.
California intends to file the lawsuit Wednesday in the San Francisco federal court, seeking to block the Trump administration from imposing reciprocal tariffs.
“We’re standing up for American families who can’t afford to let the chaos continue,” Newsom said in a statement, according to the New York Times.
Some prominent business heads have criticized the administration’s tariffs, including JPMorgan Chase CEO Jamie Dimon, BlackRock CEO Larry Fink, Trump’s billionaire allies Bill Ackman and Home Depot co-founder Ken Langone.
Langone thinks Trump has been “poorly advised” and that the administration did not let negotiations work. “I don’t understand the goddamn formula,” he added.
Dimon, who previously dismissed criticism of Trump’s tariff plans, said they will impact economic growth.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he stated.
The Trump administration initially said that reciprocal tariffs would go into effect on April 2, but later announced a 90-day relief. Markets have witnessed notable turbulence since the initial announcement.
Since then, the Dow Jones index has been down 5%, while the S&P 500 and Nasdaq 100 indices have fallen 6%.
The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, is also down 6% during this period.
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