California Governor Gavin Newsom has announced that the state is suing the Trump administration over what he called “unlawful tariffs” that threaten California’s economy, jobs, and families.

In a statement released on Wednesday, Newsom said the sweeping tariffs imposed by former President Donald Trump are creating “chaos” for California businesses and families. He argued that these actions are unconstitutional and economically damaging.

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

He further claimed that Trump lacks the legal authority to impose the tariffs, calling them “the largest tax increases in modern American history.” Newsom emphasized California’s unique position, noting the state is the largest manufacturing hub and trading partner in the US.

“No state will be impacted more than California when it comes to this kind of unilateral decision-making,” Newsom said in a post on X. “We’re taking him to court.”

The lawsuit is expected to be filed in the US District Court for the Northern District of California. State officials will argue that the International Emergency Economic Powers Act, cited by Trump to justify the tariffs, does not grant him the authority to enact such sweeping trade measures.

California is the first state to legally challenge the Trump administration’s tariffs. Known as the Golden State, California has the nation’s largest economy and is also the top importer among all US states. More than $675 billion in two-way trade flows through the state, supporting millions of jobs.

According to the Governor’s office, California’s top three trading partners are Mexico, Canada, and China. These countries purchased nearly $67 billion in California exports in 2024, accounting for more than one-third of the state’s $183 billion in total exports.