Lieutenant Governor Eleni Kounalakis’s Statement on California Lawsuit to Block President Trump’s Tariffs 

 

For Immediate Release
Wednesday, April 16, 2025    
Contact: Press@ltg.ca.gov, (916) 445-8994

 

SACRAMENTO — Today, Lieutenant Governor Eleni Kounalakis issued the following statement in support of Governor Gavin Newsom’s announcement that the State of California will sue the Trump Administration over the unlawful invocation of the International Emergency Economic Powers Act (IEEPA): 

 

“Thank you, Governor Gavin Newsom and Attorney General Rob Bonta, for taking bold, decisive legal action to challenge the Trump Administration’s unlawful abuse of the International Emergency Economic Powers Act.

Congress—not the President alone—has the constitutional authority to set tariffs. Trump’s attempt to bypass that process is not only unlawful, it’s reckless. His dangerous tariff scheme is destabilizing markets, driving up prices, threatening American jobs, and unfairly punishing small business owners and workers across the country.

It is also an abuse of power.

California supports smart, secure trade policy—on-shoring, near-shoring, and friend-shoring all matter. But so does international trade. California is the fifth-largest economy in the world because we trade, we innovate, and we lead. We won’t stand by while Trump tries to throw our economy into chaos for political gain.”

 

Lieutenant Governor Eleni Kounalakis

BACKGROUND:

In recent weeks, President Trump announced plans to impose sweeping new tariffs under the International Emergency Economic Powers Act (IEEPA) — a law intended to address foreign threats during national emergencies. Trump’s proposed actions would sidestep Congress, despite the Constitution granting Congress the sole authority to regulate tariffs and international commerce, and would impose harsh economic penalties on key trading partners, putting millions of American jobs and businesses at risk. 

In response, Governor Gavin Newsom, alongside Attorney General Rob Bonta, announced today that the State of California will file a lawsuit to block Trump’s unlawful use of IEEPA, arguing that the move exceeds presidential authority and violates the Constitution. California is the first state in the nation to take legal action against the Trump Administration’s tariff scheme. 

These tariffs would disproportionally harm California, which leads the nation in international trade and economic output.  

  • California is the fifth-largest economy in the world, with a GDP of over $3.9 trillion. 
  • California is the #1 state for manufacturing output in the U.S., with the U.S. being the 2nd largest manufacturing country in the world.  
  • In 2023, California exported over $185 billion in goods to global markets — supporting more than 4.5 million California jobs tied to international trade. 
  • California is home to the nation’s busiest port complex — the Ports of Los Angeles and Long Beach — which together handle about 40% of all containerized imports and 25% of exports for the entire U.S. 
  • Nearly 96% of California’s exporters are small- or medium-sized businesses, the very enterprises most vulnerable to tariff-related disruptions. 
  • California’s top export partners include Mexico, Canada, China, Japan, and South Korea — all of whom could be impacted by Trump’s proposed tariffs. 

The lawsuit is critical to protect California’s economy, uphold the rule of law, and prevent the dangerous misuse of emergency powers for political purposes. 

 

For more information regarding the lawsuit, visit the Governor’s press release here. 

 

ABOUT THE OFFICE OF LIEUTENANT GOVERNOR: 

As Governor Newsom’s Representative for International Affairs and Trade Development, Lieutenant Governor Eleni Kounalakis has led the advancement of California’s position as a respected and significant player in subnational international relations. A former United States Ambassador, she has consistently championed California’s interests and values on the global stage.