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California governor Gavin Newsom said that the state plans to sue to halt Donald Trump’s sweeping tariffs, arguing that the duties will cost jobs and push up prices.
The lawsuit, which represents one of the first significant legal challenges to Trump’s trade policy, will be filed in federal court in California on Wednesday by Newsom and state attorney-general Rob Bonta.
“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses and our economy, driving up prices and threatening jobs,” Newsom said.
“We’re standing up for American families who can’t afford to let the chaos continue,” he added.
Newsom, who was elected governor of California in 2018, is regarded as a potential future Democratic presidential candidate.
According to Newsom’s office, California is the fifth-largest economy in the world. The state is also home to the Port of Los Angeles, the busiest in the US and one that is particularly exposed to a slowdown in trade with China.
Earlier this month, Trump imposed steep “reciprocal” tariffs on US trading partners, before announcing a 90-day reprieve after the move sent Wall Street stocks plunging and Treasury yields soaring.
However, a universal levy of 10 per cent remains in place, in addition to certain sector-specific duties such as that on cars.
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