California Governor Dismisses US Tariffs, Looks to Outside Trade Agreements

Canada | U.S. | Money

4 hours ago

Originally posted by: The Epoch Times

California Gov. Gavin Newsom ordered his administration on April 4 to pursue new trade relationships with other countries in the wake of the federal government’s move to enforce trade tariffs.

The second-term governor came out swinging against the trade tariffs President Donald Trump implemented on Wednesday.

“Trump’s tariffs do not represent all Americans, particularly those that I represent here in the fifth largest economy in the world—the state of California,” Newsom said in a video released Friday. “We value international trade. We value our manufacturing base.”

The Trump administration unveiled sweeping tariffs aimed at reviving American manufacturing and reducing trade deficits. The program placed reciprocal tariffs on some 60 countries that the White House called the “worst offenders” due to their high tariffs or other trade barriers on U.S. goods.

White House spokesman Kush Desai said Newsom should concentrate on the state’s other issues instead.

“Gavin Newsom should focus on out-of-control homelessness, crime, regulations, and unaffordability in California instead of trying his hand at international dealmaking,” Desai told The Epoch Times in an email.

Trump’s tariff policy sparked a market wobble that continued Friday. The Dow Jones Industrial Average dropped more than 1,400 points during early morning trading, a day after being down 1,600 points.

The tariffs could hit the Golden State by affecting the price of oil. According to a recent report by the University of Southern California, the state’s aggressive climate actions and environmental regulations have spiked California’s gas prices and made it more dependent on imported oil.

According to the California Policy Center, California still gets about half of its energy from crude oil. The state imports two-thirds of its oil supply from Brazil, Iraq, Ecuador, Guyana, Canada, Saudi Arabia, and other countries.

“The economy and oil demand are inextricably linked,” Angie Gildea, KPMG U.S. energy leader, told Reuters.

“Markets are still digesting tariffs, but the combination of increased oil production and a weaker global economic outlook puts downward pressure on oil prices—potentially marking a new chapter in a volatile market.”

According to Newsom, over 40 percent of California’s imported goods come from Mexico, Canada, and China—equating to about $203 billion of the more than $491 billion the state imported last year.

President Donald Trump arrives to speak at a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025. (Andrew Harnik/Getty Images) — President Donald Trump arrives to speak at a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025. Andrew Harnik/Getty Images

The Democratic governor said the tariffs will also affect access to construction materials critical to rebuilding parts of Los Angeles County after devastating fires destroyed thousands of homes and businesses in January.

California is the largest contributor to the United States’ manufacturing output, representing nearly 15 percent of all goods and services produced in the nation, according to independent economic research firm Beacon Economics’ 2022 report.

“We look forward to continue to strengthen those ties, strengthen those bonds,” Newsom said. “I remind all of our international trading partners California is a stable trading partner, and we hope you consider that when it relates to California-made products.”

Newsom’s administration stated it will explore ways to support job creation and innovation in cross-border trade.

The governor said he also hopes to promote economic stability for businesses and workers impacted by federal trade disruptions and safeguard access to critical supplies, such as construction materials.

California has over 36,000 manufacturing firms and employs over 1.1 million Californians in manufacturing, according to Newsom’s office.

Gov. Gavin Newsom (C) walks with MOXION employees in Richmond, Calif., on May 25, 2023. (Sheila Fitzgerald/California Governor's Office via AP) — Gov. Gavin Newsom (C) walks with MOXION employees in Richmond, Calif., on May 25, 2023. Sheila Fitzgerald/California Governor’s Office via AP

The governor also said the tariffs would disrupt cross-border supply chains, including co-production in the California-Baja region, with the costs expected to be passed along to consumers.

California has signed 38 international agreements with 28 different foreign partners, according to the governor’s office.

The U.S. Constitution’s Commerce Clause does not allow states to enter into trade agreements with foreign countries, according to the National Constitution Center, a leading constitutional education website.

Stanford University Law School law professors David Freeman Engstrom and Jeremy Weinstein addressed California’s legal restrictions in a paper published in 2018.

“By virtually any measure, California would be a global powerhouse except for two fundamental constraints: it lacks many of the legal attributes and policy instruments of a nation-state, and the U.S. Constitution expressly reserves for the federal government responsibility for the conduct of foreign affairs,” according to the professors.