Gov. Gavin Newsom mentioned he’s searching for exemptions for California-made merchandise from retaliatory tariffs and needs to open talks with world allies over new commerce relationships, casting the state as a buffer towards the fallout of Donald Trump’s sweeping tariff plan.
In a put up on X on Friday, Newsom mentioned that he has directed his administration to reassure allies that “California stays a steady buying and selling companion,” whilst Trump pushes for a ten% across-the-board tariff on imports and steeper tariffs for some nations.
“Donald Trump’s tariffs don’t symbolize all People,” Newsom mentioned. “TO OUR TRADING PARTNERS AROUND THE GLOBE — California is right here and able to discuss.”
TO OUR TRADING PARTNERS AROUND THE GLOBE — California is right here and able to discuss.
We won’t sit idly by throughout Trump’s tariff conflict.
We make up 14% of the US GDP. We’re the fifth largest economic system on this planet.
We’re not scared to make use of our market energy to combat again towards the… pic.twitter.com/yTfbcWW1sO
— Gavin Newsom (@GavinNewsom) April 4, 2025
When contacted for remark, Newsom’s workplace declined to offer specifics on outreach to international locations or insurance policies his administration is pursuing. In addition they didn’t present further particulars on how California would navigate the constitutional limits on states negotiating their very own commerce phrases. Whereas Newsom can’t enter binding worldwide agreements with overseas nations, the governor can pursue casual partnerships and export promotion efforts reminiscent of state-led commerce missions.
California accounts for roughly 14% of the nation’s gross home product and ranks because the fifth-largest economic system on this planet. Newsom mentioned that financial weight — paired with the state’s inhabitants of 40 million — offers California leverage on the worldwide stage.
However it additionally makes California extra weak to world commerce disruptions, notably as main US buying and selling companions start to retaliate. On Friday, China introduced it might impose a 34% tariff on all US imports beginning April 10, mirroring the speed of Trump’s proposed “reciprocal” tariffs. A day earlier, Canada mentioned it might tax US auto imports in response to Trump’s transfer to slap new tariffs on foreign-made automobiles.
The state is a key participant in agriculture and US manufacturing, together with semiconductors, laptop tools and autos — sectors which are being focused within the commerce dispute.
California exported $24 billion in agricultural items in 2022, almost 13% of complete US farm exports. Almonds topped the checklist at $4.7 billion, adopted by dairy merchandise, pistachios and wine. Prime patrons embody Canada, the European Union, China and Hong Kong.
Within the X put up, Newsom linked to a Fox Information report citing a senior administration official who mentioned the state is anxious about rising rebuilding prices after January’s wildfires round Los Angeles and the potential for commerce disruptions within the California-Baja border area.
A lot of the manufacturing in that space relies on cross-border provide chains, the place elements usually journey backwards and forwards between factories a number of occasions earlier than changing into completed merchandise.
Copyright 2025 Bloomberg.
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