• California files a lawsuit against Trump over his executive authority to impose tariffs.
• The lawsuit claims Trump's actions cause "immediate and irreparable harm" to the state's economy.
• Governor Newsom argues the tariffs disrupt trade and violate congressional authority.
• California, as a major trade state, stands to lose billions from the tariffs.
• This lawsuit marks California's first direct legal action against Trump's tariff policies during his second term.

California Governor Gavin Newsom has announced that the state will file a lawsuit against President Donald Trump, challenging his authority to impose sweeping tariffs using the International Emergency Economic Powers Act (IEEPA). The governor contended that Trump’s executive actions regarding tariffs lack legal basis and are causing "immediate and irreparable harm" to California's economy, which is critically engaged in international trade, particularly with Mexico, Canada, and China according to Los Angeles Times.

Newsom expressed concerns that Trump's tariffs have already led to inflated prices, disrupted supply chains, and threatened the livelihoods of California families and businesses. “President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” he remarked in a statement. This legal challenge is historical as it marks the first time a state has initiated a direct legal action against Trump's tariff policies during his current term, as reported by New York Times.

The lawsuit, which is set to be filed in the U.S. District Court for the Northern District of California, argues that Trump's unilateral imposition of tariffs exceeds his authority under constitutional laws that vest the power to levy tariffs in Congress. Attorney General Rob Bonta emphasized that tariffs imposed without congressional approval are not permissible and warned that California's economy could sustain extensive damage as a result of the chaotic trade policies. “Californians are bracing for fallout from the impact of the President’s choices... this game the President is playing has very real consequences,” he stated, according to Newsweek.

As the largest manufacturing state and the largest agricultural exporter in the U.S., California's economy—which could stand as the fifth-largest globally—faces significant risks from Trump's tariffs. Projections indicate potential losses measuring into the billions for the state’s various sectors including agriculture and manufacturing, especially if international trade is impacted severely, as detailed by Business Insider.

The legal action comes amid ongoing disputes regarding Trump's tariffs with several other parties, including small businesses and advocacy groups. There are growing sentiments that Trump's aggressive tariff policies not only threaten California's economy but span a broader issue with potential ramifications for national economic strategies, a point raised by reports from HuffPost.