California Governor Gavin Newsom is going to court over President Trump’s tariffs, setting up a legal fight that could test the limits of presidential power on trade.

According to KTLA, Newsom announced the lawsuit on Wednesday morning, arguing that the tariffs are causing major problems in California. It’s the first time a state has taken legal action against Trump over his trade policy.

“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. “We’re standing up for American families who can’t afford to let the chaos continue.”

The lawsuit challenges Trump’s use of the International Emergency Economic Powers Act (IEEPA), a law passed in 1977 that gives the president power to respond to foreign threats by freezing or blocking transactions.

Newsom’s team claims that Trump’s use of the act to place tariffs on Mexico, Canada, China, or potentially impose a 10% tariff on all imports goes against the US Constitution.

Newsom, who is widely seen as a possible 2028 presidential contender, is arguing that the White House is overstepping its authority and hurting everyday Americans in the process.

KTLA notes that this legal challenge could have a big impact on how trade powers are handled between the federal government and the states.

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