Can Gavin Newsom Work Around President Trump’s Tariffs?
REYES | CLMI
As President Trump’s trade war continues unabated, California Governor Gavin Newsom formulated his own unique response to Trump-imposed global tariffs. Earlier in April, Newsom released a video arguing the tariffs don’t represent all Americans, especially Californians, given that the state’s 40 million residents make it the most populated in the nation and the 4th largest economy in the world.
Could Newsom ask international trading partners, particularly other Pacific-sharing countries, to exempt California from other countries' retaliatory tariffs on American goods. In what, potentially, serves as a case study in state geopolitical and economic independence, it rests on the governor’s ability to present his administration as unilaterally capable of examining and pursuing opportunities that expand trade with little federal oversight, intervention or guidance. But what can Newsom actually do about these tariffs? What constitutes legal recourse in this particular example so that other countries are able to exempt California from these tariffs?
It’s no secret that Newsom and President Trump have frequently clashed in the past, whether it was over threatened federal disaster aid to Los Angeles in the wake of devastating wildfires or the two being ideologically polar opposites. As seen with California becoming a sanctuary state for undocumented immigrants, California tariff exemption is no surprise. The state enjoys a massive economic footprint, and Newsom clearly retains some leverage overseeing the 5th largest economy in the world with a gross domestic product of more than $4 trillion.
That makes California as an essential part of the nation's economy, leading the nation in tech and agriculture, and Trump tariffs are already severely impact that. Legally, California can not negotiate with foreign trading partners because it would violate The Logan Act, which states no United States citizen can have certain communications with a foreign government without the permission of the federal government of the United States first.
However, Newsom could maneuver in the same way Illinois Governor J.B. Pritzker did with Mexico. Pritzker of Illinois and State of Mexico Governor Delfina Gómez Álvarez signed a Memorandum of Understanding (MOU) that indicates both states will deepen their economic cooperation.
Paying attention to that, Newsom could be looking for foreign trading partners to target states that are against the tariffs instead of the entire United States. A Newsom administration official came out saying that countries are able to target their retaliatory tariffs. This is the angle California could compel trading partners to persuade MOUs with red states that have not opposed President Trump’s tariffs.
Still, politically, that could be a tough sell to conservative, Trump-leaning states when it comes to China. China might be one of California’s top trading partners, with California placing second out of all states dependent on imported goods from China, but not all states are convinced that China is in their best interests, viewing the country as more of a geopolitical rival than as an actual trading partner - although very red Texas ranked first in terms of goods exported to China
In 2024, the U.S. imported more than $463 billion from China, supplying nearly 13 percent of all imported goods. But with California being such a large trading partner with China, it’s unclear and too difficult for the Newsom administration to find a loophole through the present Trump tariff regime. If Newsom can’t find a way to either ignore the tariffs Trump is imposing (without activating the Logan Act) or to offer something appealing enough to California’s trading partners, then the Golden State might not be exempt from retaliatory tariffs set by other countries.
However, if California can find a way to remove itself from retaliatory tariffs at the least, then it could pave the way for other states to follow the same model. In addition, should Newsom succeed in making foreign trade partners target states that are actually for President Trump’s tariffs, then he might find a get those states to go against the tariffs, as well. Ultimately, Congress has the power to stop Trump’s tariffs - since, according to the Constitution, it has the lone authority to impose and remove such levies - yet, it hasn’t made a move since the House and Senate are both Republican dominated and aligned with Trump. Being pressured even more by targeted tariffs to red states, along with irreparable damage to the economy, could be the final push that forces Congress into actions. These tariffs not only affect California but every state as stock indices crash and job hirings close due to ongoing tariffs. As President Trump continues to escalate tariffs and foreign trading partners react in kind there is the potential for a massive economic implosion that won’t be stopped.
AARON REYES is a Fellow with the Civic Literacy and Media Influence Institute at Learn4Life.