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Trump looks to move Gavin Newsom tariff lawsuit out of California

April 18, 2025
in Business
Reading Time: 3 mins read
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Trump looks to move Gavin Newsom tariff lawsuit out of California
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The Trump administration wants to shift the venue for California Gov. Gavin Newsom’s lawsuit against its tariff policies from a federal court in San Francisco to one in New York.

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Justice Department attorneys on Thursday argued that the dispute should be adjudicated in the US Court of International Trade in New York since it has sole jurisdiction over matters related to tariffs.

Newsom, a Democrat widely viewed as a potential 2028 presidential contender, filed the suit along with California Attorney General Rob Bonta in US District Court of Northern California earlier this week.

California Gov. Gavin Newsom has filed a lawsuit challenging President Trump’s tariffs. Getty Images

The lawsuit alleges that President Trump overstepped his authority by employing emergency powers to impose extensive tariffs on goods from Mexico, Canada and China.

The lawsuit specifically targets Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) of 1977, claiming it does not authorize presidential tariff imposition without explicit congressional approval.

“Congress has the power to impose tariffs, not the president,” Bonta told the Washington Post:

The state attorney general claimed Trump exceeded constitutional boundaries.

“The president has overreached again. He’s welcome to exercise his authority within his given jurisdiction, but not outside his given authority,” Bonta stated.

The Trump administration is seeking to get the lawsuit moved out of San Francisco federal court. AP

Newsom said the tariffs will have significant economic repercussions, particularly in California, which boasts the world’s fifth-largest economy.

“No state is poised to lose more than the state of California,” Newsom argued during a press conference following the lawsuit’s filing.

He urged Congress, especially Republican leaders who control both chambers, to reclaim their constitutional responsibilities.

“Where the hell is Congress? Where the hell is Speaker Johnson? Do your job,” Newsom said, referring to House Speaker Mike Johnson.

A woman takes a look at the interior of a kitchen appliance at an electronics and appliances retailer in Montebello, Calif. on April 16. AFP via Getty Images

The suit alleges that Trump’s tariffs pose immediate threats to California’s economic stability — harming sectors including agriculture, entertainment and manufacturing.

The state says that the resulting increased costs would directly impact consumers and potentially hinder the state’s ambitious policy initiatives.

“All told, President Trump’s tariffs will transform the State of California’s economic situation, put at risk its position as the fifth largest economy in the world, and directly impact Governor Newsom’s ability to deliver on his policy goals for all Californians,” the legal filing contends.

Trump’s tariff strategy has roiled financial markets and sparked widespread concern about a potential recession.

At least three additional lawsuits challenging the tariffs have been filed by conservative advocacy groups and the Blackfeet Nation tribe from Montana.

One of these cases, already filed with the trade court, has been assigned to a three-judge panel. The DOJ similarly seeks to consolidate the other legal dispiute under the Court of International Trade.

The image above shows shipping containers parked at the Union Pacific Railroad intermodal facility in Commerce, Calif. on April 16. AFP via Getty Images

Meanwhile, California officials have also voiced practical concerns about the tariffs’ immediate logistical impacts, particularly regarding rebuilding efforts from recent destructive wildfires in the state.

The tariffs, they fear, could severely restrict access to crucial construction materials such as timber, steel and aluminum — potentially delaying recovery in affected regions.

The administration recently paused some proposed tariffs for 90 days, aiming for negotiations with trading partners like Vietnam, Japan, South Korea and Israel.

However, broad tariffs remain on nearly all imported goods, with significant escalations targeting China.

Newsom’s lawsuit seeks immediate suspension of tariff enforcement, citing the Supreme Court’s “major questions” doctrine, which stipulates that explicit congressional approval is required for executive actions with substantial economic or political impacts.

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