California Gov. Gavin Newsom and State Attorney General Rob Bonta are suing President Donald Trump over his use of emergency powers to enact broad tariffs. Filed in federal court in San Francisco, the lawsuit counters Trump’s use of the International Emergency Economic Powers Act to enforce broad duties.
The complaint states that IEEPA does not list tariffs under the President’s enforceable emergency actions. Rather, it asserts that authority rests with congress. It also reasons that no prior administration has invoked the act to impose tariffs since the law was enacted in 1977.
Newsom and Bonta held a press conference to discuss the unique impact of tariffs in California, focusing on targeted tariffs across Mexico, Canada, and China – the state’s three largest trade partners, which have responded with varying degrees of retaliation.
Bonta cited California’s agricultural industry for being the largest agricultural exporter in the nation. Mexico, Canada and China alone accounted for 40% of California imports and spent $24 billion on state agricultural exports in 2022. Bonta said the state has received warnings from vendors that costs will be passed onto California consumers.
“Bottom line, Trump doesn't have the singular power to radically upend the country's economic landscape. That's not how our democracy works,” said Bonta.
Newsom told reporters that the early market effects of tariffs are forcing him to adjust the state budget outlook for the coming fiscal year. He claims to have been told by economists that tariff panic will “significantly downgrade” California's gross domestic product while increasing unemployment.
Last week Newsom initiated a campaign to promote California tourism and welcome Canadian visitors, seeking to separate the state from happenings in D.C.
Last year, a white paper by researchers at the University of California, Davis, and North Dakota State University warned that a U.S. expansion of tariffs on Chinese imports would cost California’s economy $6 billion annually. Agriculture would see a quarter of its exports wiped out, especially with pistachios, dairy and wine.
The press event was hosted by Christine Gemperle, a second-generation poultry and almond farmer. Gemperle Family Farms was established in Turlock in 1951. In addition to eggs, they now grow over 1,000 acres of almonds, using composted chicken manure to improve soil fertility. The farm has also been home to sustainable farming research, having worked with researchers from the Community Alliance with Family Farmers, American Farmland Trust, U.S. Department of Agriculture and UC Davis.
Gemperle described the necessity of market access and imported materials to her operation, especially since planting and harvesting can change every season and does not allow for wiggle room in the agricultural supply chain. She also questioned whether they would be able to access the materials necessary to grow their crops, or if they could even afford them.
“The last thing we need is more uncertainty and not knowing whether we can ride this one out,” said Gemperle, referring to drought conditions and pandemic-era pressure.
It’s easy to be “in the know” about agriculture news from coast to coast! Sign up for a FREE month of Agri-Pulse news. Simply click here.
Chris Murphy, chief executive officer of Sierra Pacific Warehouse Group, spoke alongside Gemperle. He said everyone should “rally around” dependable U.S. suppliers and manufacturers. given their outsized role in the national supply chain.
The Central Valley-based warehouse network is family owned and operated and provides multi-temperature storage facilities. Sierra Pacific supports a broad range of agricultural products, including vegetables, nuts and wine.
In a statement, Amanda Russell, Almond Alliance of California director of communications, said the association is “closely monitoring recent developments related to trade policies affecting the agricultural sector,” noting the importance of trade stability to the state’s specialty crop industry and rural communities.
“As one of the state’s leading agricultural exports, almonds rely on access to more than 100 global markets,” wrote Russell. “Supporting a diverse and resilient export strategy remains a top priority to ensure long-term industry sustainability.”
Susanne Stirling, California Chamber of Commerce senior vice president for international affairs, told Agri-Pulse the lawsuit will create an opportunity for CalChamber to reiterate its commitment to a national free trade agenda.
She added that though the organization recognizes the negotiating power of tariffs, its focus will be lowering tariffs and non-tariff barriers to expand California exports. She also raised concerns over growing animosity from foreign trade partners.
“The governor is certainly correct in his concern for how the tariffs impact California,” said Stirling. “We have a very diverse economy here in California…that covers everything from agriculture to manufacturing to tourism.”
For more news, go to Agri-Pulse.com.
