According to US media reports, California’s lawsuit against the US government should argue that the law on the basis of which Trump has imposed the tariffs of up to 145 percent imposed on him do not enable him to raise the surcharges without the consent of the congress.
California is the richest US state and, as a state of its own, would be the fifth largest economy in the world. The state in the southwest of the United States is particularly affected by the trade conflicts spent by Trump: the majority of Chinese imports are introduced to the USA via California. In addition, the west coast state is technology center and an important agricultural producer as well as an important trading partner for neighboring countries Mexico and Canada.
California also fears that bottlenecks in import goods such as wood, steel and aluminum could make it difficult to reconstruction in Los Angeles after the devastating forest fires in January.
Governor Newsom from the Democrats is a rival of the Republican Trump and is traded as a possible presidential candidate for his party for the election in 2028. So far, however, Newsom has avoided an open conflict with Trump.
Trump announced a minimum customs rate of ten percent for all trading partners in early April. For around 60 countries, he initially imposed significantly higher serves, including 20 percent for the EU. A week later, however, the US President carried out a U-turn and announced a “break” for 90 days. However, the minimum rate of ten percent remained. Trump’s procedure in the customs conflict he did triggered massive course collapse on the stock exchanges.
