• California's GDP reaches $4.1 trillion, making it the fourth-largest economy globally.
• Governor Gavin Newsom attributes the growth to innovation and sustainability investments.
• Concerns arise over potential threats from federal tariff policies under President Trump.
• Data shows California's economy is growing faster than the U.S. and other leading economies.

Governor Gavin Newsom announced that California's nominal gross domestic product (GDP) has officially reached $4.1 trillion, surpassing Japan's GDP of $4.02 trillion and making California the world's fourth-largest economy behind the United States, China, and Germany. This new ranking is based on data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis, with Newsom asserting that "California isn't just keeping pace with the world — we’re setting the pace," highlighting the state's continuous economic growth, according to Latimes, Sfgate, and BBC.

Newsom noted that California's economic growth of 6% in 2024 outpaced the national growth rate of 5.3% and represents significant progress fueled by sectors such as technology, agriculture, and entertainment. He emphasized that "our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation," according to Indiatimes and The Hill.

Despite this economic achievement, Governor Newsom voiced concerns over the tariff policies implemented by the Trump administration, which he argues could jeopardize California's economic stability. "While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration," he stated, continuing to advocate for the state's economic interests through legal challenges against federal tariffs, as reported by Indiatimes and Latimes.

Newsom's legal actions include a lawsuit challenging the president’s authority to impose tariffs without congressional consent and address potential impacts on California's significant trade, particularly with Mexico, Canada, and China, which are essential to its economy, according to Indiatimes, Sfgate, and The Hill.