California seeks emergency halt to Trump tariffs as economic harm mounts

The California government escalated its legal battle against U.S. President Donald Trump's sweeping tariff policy on Tuesday, filing a motion for a preliminary injunction that asks the court to immediately block these "illegal tariffs" while the lawsuit proceeds.

California Governor Gavin Newsom and Attorney General Rob Bonta argued that the tariffs are causing significant economic harm to the state, projecting losses of $25 billion for California consumers and the elimination of more than 64,000 jobs.

"Last fall, Americans at the voting booth demanded lower prices. Now, Trump's chaotic tariff war is threatening to skyrocket the cost of living for families, lower wages, slash jobs, and throw business owners and innovators into a spiral of uncertainty," Bonta said in a statement released by his office.

The lawsuit, filed in the U.S. District Court for the Northern District of California, centered on whether Trump exceeded his presidential authority by invoking the International Emergency Economic Powers Act to impose tariffs without congressional approval.

"President Trump has overstepped his authority, and now families, businesses, and our ports are literally paying the price," Newsom said, according to a press release from his office. "As the largest economy in the nation, California has the most to lose from President Trump's weak and reckless policies."

The financial impact extends beyond consumer prices, California officials noted in Tuesday's press release, pointing to recently downgraded economic projections for the 2025-2026 state budget that reflect "increased unemployment and near-term inflation" directly linked to tariff-related uncertainty.

Small businesses, especially those in minority communities, are reporting outsized hardship. "As tariffs continue to drive up costs and disrupt supply chains, it's our local small businesses – especially those owned by Latino entrepreneurs – that are being hit the hardest," said Cathy Rodriguez-Aguirre, president of the Sacramento Hispanic Chamber of Commerce, according to the 25-page court document.

California's agricultural industry has also come under additional strain from retaliatory tariffs imposed by U.S. trading partners.

The court has not yet scheduled a hearing date for the preliminary injunction motion. Legal experts suggest the case could ultimately reach the U.S. Supreme Court, raising broader constitutional questions about the scope of presidential authority over trade policy.

California is not alone in the legal challenge to Trump's tariffs. Five American small businesses asked the New York-based U.S. Court of International Trade on Tuesday to halt Trump's "Liberation Day" tariffs, arguing that he overstepped his powers by declaring a national emergency to impose across-the-board taxes on imports from nations that sell more to the United States than they buy.

Trump's April 2 imposition of the tariffs "represents and unprecedented and unlawful expansion of executive authority," Jeffrey Schwab, a lawyer representing the plaintiffs, told a three-judge panel of the court.

Trump's interpretation, Schwab said, would allow him to impose tariffs "at any rate, at any time, simply by declaring a national emergency." No law gives the president the unilateral tariff authority that Trump has claimed, Schwab said.

(With input from agencies)