BREAKING NEWS: California Governor Gavin Newsom Announces New Lawsuit Against Trump's Tariffs

Summary

In a fiery press conference, California Governor Gavin Newsom and Attorney General Rob Bonta announced a new lawsuit challenging President Trump's controversial tariffs. These tariffs, reportedly the highest in over a century, are severely impacting California's economy, which is the fifth largest in the world. Newsom criticizes the administration's approach, labeling the tariffs as unlawful and harmful to California's businesses, workers, and families, while also calling out the lack of congressional oversight. The lawsuit aims to reinstate economic stability and uphold constitutional rules.

Highlights

• Governor Newsom announces a lawsuit against Trump's tariffs, citing unlawful practices. ⚖️
• California's economy, ranked the fifth largest globally, is heavily impacted by the tariffs. 📉
• The lawsuit is the 14th action taken against the Trump administration by California in recent weeks. 🔥
• Newsom accuses Trump of bypassing constitutional authority, highlighting a breach in separation of powers. ⚖️
• The economic impact of these tariffs could make the US economy "permanently smaller" by $100 billion annually. 💸

Key Takeaways

• Governor Newsom and AG Bonta are taking on Trump's tariffs with a bold lawsuit. 🚀
• California's massive economy is under threat from these lofty tariffs. 🌎
• The lawsuit argues that Trump exceeded his authority, violating constitutional boundaries. 📜
• Newsom urges Congress to step up and act against the administration's overreach. 🏛️
• Focusing on the harm to California, the lawsuit seeks to protect local businesses and the workforce. 💪

Overview

California is gearing up for a legal battle against what it sees as an overreach of power by President Trump with his recently imposed tariffs. Governor Gavin Newsom and Attorney General Rob Bonta are at the forefront, challenging the tariffs through a newly filed lawsuit. They argue that these tariffs, being the steepest in over a century, are harming California uniquely and are beyond the president's constitutional authority.

Throughout the fiery press conference, Newsom didn't hold back in his criticism. He accused the administration of acting unlawfully and wreaking havoc not only on California's robust economy but also on the US economic landscape. The lawsuit, Newsom claims, is essential to restore economic stability and uphold constitutional norms.

Governor Newsom calls on Congress to step up, questioning Speaker Johnson's passivity amidst these sweeping economic changes. This lawsuit isn't just about tariffs—it's a statement against what Newsom describes as chaotic governance and a lack of accountability. With California's economy being so vast and integral, the implications of these tariffs could ripple globally.

Chapters

• 00:00 - 01:00: Introduction and Context Setting The chapter sets the stage by introducing California Attorney General Rob Bont, who is addressing the negative impacts of President Trump's tariffs on businesses. He acknowledges Christine and Chris for sharing their experiences and highlights how these tariffs are disproportionately affecting California's economy. The chapter aims to provide context on the broader economic disruptions caused by trade policies.
• 01:00 - 02:30: Announcing the Lawsuit The chapter titled 'Announcing the Lawsuit' discusses the economic significance of the region, describing it as the fifth largest economy in the world and a major driver of the national economy. The chapter reveals that, in collaboration with Governor Nuome, a 14th lawsuit is being filed against the president within a span of less than 14 weeks. This lawsuit specifically challenges the president's imposition of tariffs under the International Emergency Economic Powers Act, which is claimed to be unlawful. The chapter indicates that the legal action seeks judicial intervention to limit the president's power in this regard.
• 02:30 - 06:00: Unlawful Tariffs and Constitutional Arguments The chapter discusses Trump's imposition of tariffs without Congressional approval, framing it as a constitutional issue.
• 06:00 - 15:00: Economic Impact on California The chapter "Economic Impact on California" discusses the ongoing legal issues related to tariffs, highlighting efforts by officials to address these concerns. Acknowledgment is given to Governor Nuome and his team for their leadership and collaboration with the speaker's department, specifically the Department of Justice. The chapter notes the significant contributions of individuals in the government law section, whose dedication and efforts have been instrumental in advancing the lawsuit.
• 15:00 - 20:00: Governor Newsom's Remarks on State's Economic Stake Governor Newsom's remarks highlighted the critical economic issues facing California amid recent developments. He acknowledged the dedication and efforts of public servants both at the Department of Justice and within the governor's office, emphasizing the serious and unstable nature of the current situation. The main focus was on the risks posed to California's economy, including potential impacts on businesses, workers, and families. Newsom underscored the statewide risk exacerbated by the tariffs imposed by President Trump on all of the US's trading partners as of April 2nd, which have caused global economic disruptions.
• 20:00 - 29:00: Specific Industries and Regional Impacts The chapter discusses the significant increase in tariffs, which have reached over 22%, the highest level in more than a century. This is notably the case for certain trade partners, where tariffs are even higher. For example, tariffs on goods from neighboring countries, Mexico and Canada, stand at 25% for more than half of the goods. In response, Canada has implemented a 25% retaliatory tariff, impacting fresh produce and wine from California. Additionally, tariffs on China have become extremely high, described as astronomical in the text.
• 29:00 - 39:00: Governor Newsom on California's Leadership The chapter titled "Governor Newsom on California's Leadership" discusses the economic impact of international trade tariffs imposed by China. In retaliation to US tariffs, China has levied a 125% tariff on American goods, including products from California such as nuts and dairy. These trade tensions have contributed to significant losses in the US stock market, marking the largest two-day loss ever recorded. Furthermore, economic analyses suggest that these tariffs could result in the US economy becoming permanently reduced by $100 billion annually.
• 39:00 - 52:00: Legal Strategy and Expected Outcomes The chapter discusses the impact of Trump's tariffs on the average American household and the economy, specifically focusing on California. It highlights that instead of fulfilling Trump's campaign promises to improve the economy and affordability, these tariffs are costing American households an additional $2,100 per year. California, being the nation's largest importer and second-largest economy, is particularly affected, with significant harm to its businesses and residents.
• 52:00 - 63:30: Governor's Personal Reflections and Call to Action California's agricultural exports were significant in 2022, totaling nearly $24 billion. The biggest trade partners for California are Mexico, Canada, and China, which are responsible for over 40% of California's imports and serve as the primary export destinations with them purchasing close to $67 billion worth of goods. These three countries alone account for one-third of all of California's exported goods.
• 63:30 - 71:00: Federal Funding and State's Fiscal Health The chapter discusses the adverse effects of Trump's tariffs on the fiscal health of the state of California. The tariffs have increased costs for the state, as vendors plan to pass these costs onto the state's government. This has made it challenging for the state to purchase goods, with implications for its financial stability. The speaker criticizes Trump's approach, asserting that his policies are detrimental to business and possibly unlawful.
• 71:00 - 74:00: Closing Remarks and Final Questions The chapter titled 'Closing Remarks and Final Questions' addresses the issue of tariffs that were allegedly imposed unlawfully by executive orders under the guise of the International Emergency Economic Powers Act (IEEPA). The discussion critiques former President Trump's justification for using this law to impose tariffs, asserting that the IEEPA is not applicable in this context.

BREAKING NEWS: California Governor Gavin Newsom Announces New Lawsuit Against Trump's Tariffs Transcription

• 00:00 - 00:30 thank you all for being here and taking the trip I want to thank uh Christine and Chris for sharing their stories and speaking up about the impact on on their businesses and California businesses generally Uh Rob Bont California Attorney General and we're here because President Trump's rogue and erratic tariffs are wreaking havoc on our nation's financial systems and causing uniquely immense harm to California's
• 00:30 - 01:00 economy the fifth largest economy in the world and a major driver of our national economy Together with Governor Nuome I'm filing our 14th lawsuit against the president in less than 14 weeks Uh this one challenging the tariffs he unlawfully imposed under the International Emergency Economic Powers Act We're asking the court to reign in the
• 01:00 - 01:30 president restore to our economy and uphold the constitution The president is yet again acting as if he's above the law He isn't He is yet again violating the US Constitution overriding Congress's authority and breaching the separation of powers It's simple Trump does not have the authority to impose these
• 01:30 - 02:00 tariffs He must be stopped Before I get into the nitty-gritty I want to express my great appreciation to Governor Nuome and his team for their leadership on this issue and many issues and their partnership and collaboration with us on this case Uh we're proud to work with them as always And I want to recognize my team at the Department of Justice especially the individuals in the government law section who work tirelessly to make this lawsuit possible It's an honor to work alongside so many
• 02:00 - 02:30 dedicated public servants both at the DOJ and in the governor's office The gravity and instability of the situation at hand cannot be overstated The risk to California to our businesses our workers our families cannot be overstated As of April 2nd Trump has imposed tariffs on every single one of the US's trade partners sending shock waves around the globe On average the tariffs
• 02:30 - 03:00 are more than 22% the highest in more than a century For some trade partners the tariffs are much steeper Tariffs on our neighbors Mexico and Canada are 25% for more than half of goods Canada has responded with a 25% retaliatory tariff including on fresh produce and wine from California The tariffs on China are now at an astronomical
• 03:00 - 03:30 145% In response China has retaliated with a 125% tariff on US goods including on California nuts and dairy products Just two days after Trump announced his most sweeping tariffs the US stock market suffered the largest two-day loss in history One analysis projects that the tariffs will make the US econom economy quote permanently smaller by hundred billion annually end quote And another
• 03:30 - 04:00 found that Trump's tariffs will cost the average American household $2,100 per year nothing resembling Trump's campaign promises to fix the economy and make life more affordable for Californians and for Americans Given California's enormous economic footprint the impact of these tariffs on our state our businesses our people is especially harmful California is the nation's largest importer and second largest
• 04:00 - 04:30 exporter the largest when it comes to agricultural exports In 2022 California's agricultural exports brought in nearly $24 billion Mexico Canada and China happen to be our biggest trade partners Over 40% of California's imports come from those three countries and they're our top three export destinations buying close to 67 billion dollars in California exports over one-third of all of our exported goods
• 04:30 - 05:00 Trump's tariffs are already hampering the state's ability as a major purchaser of goods ourselves to contract for purchase and sell goods Already vendors have warned us that they're going to pass the cost of Trump's tariffs onto the state of California Trump may claim he's a great businessman but Trump's tariffs are truly terrible for business and they're breaking the law
• 05:00 - 05:30 Let's get to our lawsuit It focuses specifically on tariffs unlawfully imposed by executive orders that claim authorization under what's known as the International Emergency Economic Powers Act or EA This is important because Trump claims this law is the reason he can impose these tariffs and he is wrong The truth is the EA does not apply here
• 05:30 - 06:00 Trump has had to resort to creating bogus national emergencies that defy reason He's even claimed there's an influx of illegal immigration and illicit drugs crossing over the Canadian border as the basis for imposing acrosstheboard tariffs on Canada It is completely untrue In actuality less than 1% of fentinel and illegal crossings actually come from Canada The reality is the US Constitution gives Congress the power of
• 06:00 - 06:30 the purse It's Congress's responsibility to set and collect taxes duties and excises including yes tariffs not the presidents Congress hasn't authorized these tariffs much less authorized imposing tariffs only to increase them then pause them then imminently reinstate them on a whim causing our nation and the global economy whiplash Trump is attempting to override Congress and steamroll the separation of
• 06:30 - 07:00 powers That means he's trampling over his own party by the way which currently controls Congress Again Congress hasn't given him the authority to impose these sweeping and chaotic tariffs pursuant to emergency powers which means he can't do it Bottom line Trump doesn't have the singular power to radically upend the country's economic landscape That's not how our democracy works Trump may claim these tariffs send
• 07:00 - 07:30 a message to our international partners but Americans are the ones shouldering the burden The message Americans are receiving is that your costs are going up the farmers here in the Central Valley the small businesses up and down the state the families sweating over their household budgets to see where exactly they can squeeze out the extra thousands of dollars each year that these tariffs could cost The cost of groceries and gas and other goods are rising The cost of
• 07:30 - 08:00 bananas coffee chocolate wine iPhones video games clothes all on the rise as Republican Senator Ted Cruz said quote "Tariffs are a tax on consumers." End quote Couldn't say it more clearly And we're feeling it Seniors looking at their retirement savings are feeling it Parents looking at the college funds they've built up for years are feeling it Farmers looking at the crops they're counting on to support their families
• 08:00 - 08:30 and pay their workers are feeling it Trump's tariffs are a slap in the face to Americans especially hardworking families just trying to get by It's time to put this chaos to an end It's time to hold Trump accountable to the law With this lawsuit we are As attorney general it's my job to ensure California remains the best place to live to work raise a family or run a business That's exactly what I'm doing
• 08:30 - 09:00 today I'm proud to be alongside our great governor to fight for California's vibrant economy businesses workers and families And before I pass it off to my partner on this lawsuit Governor Nuome I want to give a final sha shout out to the folks on my team who work tirelessly on this lawsuit They don't do it for the recognition but I'm going to recognize them Zelda Vasser Carolyn DS Lara Hadad Shawan Shea Julie Veroff Matthew Wise Thomas Patterson Christina Bull Art
• 09:00 - 09:30 Ellie Bloom We have a great team and I'm proud of them Incredible public servants each and every one of them With that it's my great pleasure to introduce our great governor Governor Gavin Newsome Thanks Rob Thank you Mr Attorney General And um and most importantly thank you Christine for uh having us and uh in hosting us and and thank you Chris for uh your stewardship and leadership and and willingness to uh be here and and and step up at this critical moment Look
• 09:30 - 10:00 I I think the attorney general did an exceptional job uh in laying out uh the the framework of this lawsuit and the why as it relates to uh the particular issues under the EA and notably issues that have been brought to the four as it relates to the ma major questions doctrine recently by the Supreme Court I would just uh highlight uh just two of the specific examples the Supreme Court uh used as it relates to the major questions doctrine on the issue of student loans under the Biden administration on the clean power plan
• 10:00 - 10:30 under the Obama administration If they are consistent uh then this lawsuit is a lock in terms of what the attorney general has laid out uh and what this state is asserting But I want to tell you what our state of mind is as it relates to uh the issues that impact the state of California obviously the state of our union and the state of the economy more globally Uh we talk often about California being the fifth largest economy in the world That is correct We're also the largest manufacturing
• 10:30 - 11:00 state in the United States of America 412 billion output And I want to put that in perspective Uh Texas is 41% smaller It's a 41% larger share of manufacturing output just here in the great state of California Puts in perspective something that often isn't communicated I think as effectively as it should be By the way the United States is the second largest manufacturer in the world which is also something that I think is important to
• 11:00 - 11:30 highlight So the manufacturing uh footprint in this state is disproportionately impacted by the tariffs disproportionate to any other state in the nation Of course we talk about the fifth largest economy in the world Let's put that in perspective We're 14% of the US GDP Uh that is 50% higher than the next state No other state will be more impacted by the impacts of this as Christine said uncertainty that is best described as
• 11:30 - 12:00 toxic uncertainty because of these tariffs Let me underscore that with more consideration and context to where we are We are also the largest hunting fishing agriculture and forestry straight in this nation 50% larger than the next state Texas When folks talk to us about the impacts regional impacts of rural economies you're talking about California You're not talk just talking
• 12:00 - 12:30 about the Midwest and places like Texas You're talking about our state the state of California Almonds almonds you see around us export dependent Pistachios export dependent Dairy export dependent In fact 43% of almonds and pistachios and dairy are export dependent in the state of California Few industries will be hammered more than the toxic uncertainty of these Trump tariffs The
• 12:30 - 13:00 impacts What more evidence do you need check your 401k Check your portfolio If it includes Nvidia you should check it right now Nvidia the great California company one highlighted by this same Trump administration over the course of the last 24 to 48 hours just got hit today with a $5.5 billion charge Great California company got hit with a $5.5 billion charge sending the
• 13:00 - 13:30 markets to tumble yet again today NASDAQ down over 2% as I speak The uncertainty is pronounced and it is profound in the state of California Consider just the imports coming from Mexico Canada and China 44% of all of the imports into the state of California alone come from just those three countries 197.3 billion in 2023
• 13:30 - 14:00 The impacts of these tariffs particularly on those three countries disproportionately impact the state of California Across the spectrum the impacts are off the charts We talk about regional disparities The impact in counties like this counties like Kerna rural parts of the state will be outsized It's not just the coast and
• 14:00 - 14:30 technology Think about the impacts already in the mega region of Baja and San Diego Chris you were talking about the integration of supply chains and a deeper appreciation understanding that decades and decades forming relationship building trust manufacturing one side of the border assembling on the other side of the border You think about the impacts the automobile industry electronics aerospace in our state alone
• 14:30 - 15:00 disproportionate impacts So California why California well that's why no state is poised to lose more than the state of California So that's our state of mind and that's why we're asserting ourselves on behalf of 40 million Americans And I imagine if you caucus those 40 million Americans you'd find few I don't care where they were in the last election that are celebrating this uncertainty that are celebrating the largest tax
• 15:00 - 15:30 increase in modern US history In essence a sales tax in essence a sales tax a regressive sales tax that hurts working folks that hurts poor folks that hurts hardworking folks like Christine and those that Chris represents disproportionately This is recklessness at another level The geopolitical impacts are outsized The
• 15:30 - 16:00 trade impacts are outsized not just the economic It's why we were up in Canada making a case a new to try to encourage Canadians What the hell do we have on the Canadians mocking people in another country one of our great partners talking about being a 51st state The fact that we had to invest in advertising up in Canada to encourage
• 16:00 - 16:30 people to come to the great state of California We're 2 million Canadians visited last year is a sign of the times a testament to the moment we're living in We're 2,000 miles away from Washington DC We're a world away from the values that are emanating out of the White House Again that's why we're here That's why we are asserting ourselves I can't imagine anything more unifying for a state at this moment than stepping up as we're stepping up here today on this critical issue So I just
• 16:30 - 17:00 again want to thank the attorney general who's not been timid Uh he mentioned 14 lawsuits We overall have 15 uh when you had the one he wasn't directly involved in I want to thank him and I want to thank the legislature Don't forget we did a special session seems like a lifetime ago It was just a few months ago saying we have a open hand not a closed fist And it was a sincere sentiment We didn't want to go down this path We were hoping we didn't need to go
• 17:00 - 17:30 down this path but we prepared to go down this path And so I'm grateful not just to the attorney general but to all of those members of his staff that uh he called out I want to thank them for their partnership their stewardship The legislature the same for recognizing the severity of this moment Um we talk about ongo stupidity You know this needs to be
• 17:30 - 18:00 updated in the next Wikipedia or the next encyclopedia as a poster child for that It's a serious and sober moment And I'd be in closing lying to you if I said it can be quickly undone And that's why we have a unique responsibility to do more at this moment as well And I've been involved in I think 19 or so with countries
• 18:00 - 18:30 around the world We've been reaching out to uh foreign leaders They've been reaching out to us And the critical nature of subnational trade and people-to-people relationship cannot be understated at this moment And California can and will play an outsized role in that uh relationship We have got to rebuild trust 80 years of economic dominance in just a matter of weeks
• 18:30 - 19:00 being unwound by this kind of recklessness And so we are here very mindful of the anxiety that this is imposed on all of you and very mindful of our role and responsibility at this moment not to be bystandards and try to shape this debate and shape this conversation in this lawsuit is a meaningful and justifiable effort to do just that to be accountable
• 19:00 - 19:30 at this critical moment in not just California history uh but American and world history With that we're here to answer any questions Governor well how can you not be i've got uh four kids 80% of their toys under their Christmas tree come from China I've got family members living paycheck to paycheck Many family members My mom who passed away years and years ago was one of them
• 19:30 - 20:00 I mean no rationale no plan no conscience to what it's doing to real people No consideration of congressional responsibility Where the hell is Congress where the hell is Speaker Johnson do your job They're sitting there passively as this guy wrecks the economy of the United States of America which has dominated the global economy Don't take my word for it the Wall Street Journal We are the envy to the world and
• 20:00 - 20:30 overnight a wrecking ball to America's reputation our role and our relationship And so I uh yeah I'm angry as a parent as a taxpayer as someone who has a retirement account that didn't come from wealth no trust funds in my family you know worked hard all my life a guy who has businesses I know I have blind trust and I trust you can appreciate
• 20:30 - 21:00 that I won't try to cross the line on that But as someone who's built a business that also is export dependent some of them industries like a that I'm involved in I have an unique understanding It's not an academic understanding of the stress that folks are going through And so it it connects on every level and and so I uh yeah I'm angry about this Governor you've been
• 21:00 - 21:30 very embraceing that phrase Well you used it I didn't That's why Can you talk about you know kind of why you're embracing this moment to be more aggressive i mean it's why because for the last few weeks we've been uh we've been uh absorbing the impacts We've been looking at the law We've been coordinating and collaborating with our attorney general Uh we've been talking to other states and we're the first mover Um and that's
• 21:30 - 22:00 what California does Um every one of the lawsuits that have been mentioned we have been part of We're funding We're working in collaboration and partnership So um why now well that's uh pretty consistent with past practice And you may recall we were involved in 122 lawsuits against the Trump administration and Trump 1.0 um had this the 15 it's 137 There's no more uh I think assertive state in our
• 22:00 - 22:30 union that's standing up for the state of this union than the state of California Mr Governor I'm wondering if you can talk a little bit more about the response you got from Well we have uh we have great relationships Not good relationships great relationships You've seen they've shared not just me some of the recent meetings we've had with the ambassador to Germany ambassador to UK uh to the premier just 48 hours ago with
• 22:30 - 23:00 the premier of British Columbia Um those are just three recent examples That doesn't even include all the other private conversations I've had that we're respecting the privacy all the outreach theus that people are looking to see if we can update the relationships they're they're trying to maintain uh and the imperative they want to know that we're a stable partner They want to know we're not going to turn their back as this administration's turned their back on our allies And they want to know that uh that uh we're going
• 23:00 - 23:30 to continue u to have their back as it relates to addressing the anxiety and uncertainty particularly as it relates to their making a case And I find this interesting Uh making a case that we don't even need to make but they're making that California is not this administration in terms of policy in context of retaliatory tariffs Now I have no authority in terms of
• 23:30 - 24:00 international trade I I recognize the limitations That said through the governor's office of business we created an international arm We've been very proactive very aggressive Lieutenant Governor has been a leader and point person in that uh respect And so we're building on that work and we're building on those relationships And uh we have lined up many many subsequent meetings And uh I think the visit California announcement we made 48 hours ago is indicative of the kind of proactive work we'll be doing uh to reach out to our
• 24:00 - 24:30 trading partners and make the case that California has their back And uh we want them back visiting the state We want them continuing to trade with this state We want to continue to maintain our dominance Uh I by the way I haven't even brought up the port of LA the port of Long Beach and the fact that 40% of the goods movement in this country comes through this those two ports I haven't even brought up the pizza shops and the coffee shops that are disproportionately dependent on that trade every single day I mean you don't this is this is not even complicated the impacts of small
• 24:30 - 25:00 businesses that cannot pass along these increased costs that are losing customers The impacts and I want to speak for Chris and others but the impacts already on the lack of investment Any business person small or large uncertainty is the number one enemy Just give us certainty The one certainty that is only certainty we have is uncertainty that literally on a whim day
• 25:00 - 25:30 to day hour to hour phone call from a donor to a phone call from another donor that they will be a waiver There will be an exemption I mean from free capitalism to crony capitalism just like that corruption This is the personification of
• 25:30 - 26:00 corruption I appreciate the press You chase this for a living This is smashmouth in your face every minute of every day every hour And you know it You've seen it How in the hell are we sitting by and allowing this to happen so again that's the why and that's what we are pushing back against in this lawsuit Mr Governor
• 26:00 - 26:30 thanks for taking the time Thanks Attorney General and Christine and Chris for hosting us Two quick questions Number one have you spoken to the president about this and number two for Jimmy it's unrelated for Channel 4 News in the Bay Area Do you have any reaction to the Venisha refinery announcing the refinery yeah Valero just just briefly on that respecting the importance of that question under our special session uh the first special session bill we advanced there was a requirement uh to give notification as
• 26:30 - 27:00 relates to any augmentation operations or andor closures for uh for refineries in the state of California Pursuant to that we were given notification uh this morning late last night early this morning made official uh and we have a year uh to now address that issue And I can assure you beginning last night uh we had all hands uh and we're in the process of addressing uh any anxiety that may be created or any market disruption that may be created by that
• 27:00 - 27:30 announcement But we have time pursuant to that special session uh to mark some progress And already this morning first thing this morning our teams are assembling uh to advance that progress in concert in partnership uh with the legislature On your first question uh perhaps you can advance that Yes Have you spoken to President i've been I haven't spoken to him directly but uh we reached out um to the White House to give them heads up Governor my name is Jafar I'm a reporter with KC3 News Last
• 27:30 - 28:00 month we reported how you sent phones to the CEOs of the headquarters Were they bat phones i like that I like the description Batones I'm gonna keep that Yeah Yeah All right That's nice I mean it sounds CEOs discussed tariffs with you now through this new line of Yeah Well it's interesting I mean um all of them There's not one that has expressed anything uh differently All of them have brought the issue of tariffs up and uncertainty Can you say who you've been talking to no Uh that's the I don't want
• 28:00 - 28:30 to call them out again I I just it the idea of the let me just say just on the meta point um and some what the hell bat phones and the governor so I it just I um I thought it was important u that u that some of the big biggest job creators we've been doing this as you know with our jobs first plan with small businesses um for the last few years we've built this framework uh around regions rising together and I'm really proud of that work um I felt we needed
• 28:30 - 29:00 to do the same for some of the larger employers in the state And so I uh reached out to them and I did a burner phone and just put my cell phone in there uh just with my number and I wrote a handwritten note to each one of the CEOs saying you need something call me Here's my cell phone And to your point and some of your reporting a lot of them have reached out directly I will say full disclosure a lot of them thought it was fraud They didn't know what to expect They didn't even was real They didn't even know what was going to happen with some uh we had security
• 29:00 - 29:30 personnel call uh saying is this actually from you guys So it's been an interesting experiment I'm just being a little too forthright with you Uh but for those that that got it eventually many of them just texted said I'm just want to confirm it's you uh uh those conversations uh they just simply hasn't been one of them uh where tariffs haven't been brought up period You haven't shared any concerns about terrorism every single one of them have by definition of course I mean it's just it's it's it's uh I said the worst
• 29:30 - 30:00 ongoing in in the history of this country One of the most self-destructive things that we've experienced in modern American history I mean the the the attorney general just laid out the 22% some have estimated as much as 26.7 27% all in but you're getting near that smid uh the Smooth Holly numbers that every independent assessment said exacerbated the Great Depression I mean it's literally comparable to that Um you know I know a thing or two
• 30:00 - 30:30 about China I've sat down with President Xi This is you know this is serious and uh and uh we we need to take it seriously Again no state has more to lose I'm sorry How do you think the court's gonna respond well I'm going to have I got my attorney here [Music]
• 30:30 - 31:00 We bring lawsuits when we think we're going to win We've done that in the other 13 lawsuits up to this point We've had a lot of success uh in those lawsuits so far securing temporary restraining orders preliminary injunctions The approach here is the same although its application is different in that it applies to these um universal tariffs It's the idea that the president is exercising authority that he doesn't have The president can't do unlawful things It's really that simple
• 31:00 - 31:30 And he thinks he's above the law He's not He thinks he can violate the Constitution and the law and he can't And so it's up to us to hold him accountable to following the law And in any court where we will get what courts give a fair and objective hearing a full review of the facts a complete analysis of the law we believe we'll be successful And we believe that in this case
• 31:30 - 32:00 Well let me give you some proof points just to start just for the process considering just think about the procurement in the state of California meaning the state buys goods and services Um it we buy over10 billion dollars a year in IT and other nonIT goods The tariffs by definition have already had an impact on the cost of those goods So that's a direct economic impact Um I talked to you about the markets Why do I bring up
• 32:00 - 32:30 the markets because the markets in California play an outsized role in our budget Capital gains plays an outsiz role in our budget Nvidia's success as a company I gave it a pro point plays an outsized role in the revenue we generate in this state in our ability to support critical programs including supporting farmers like Christine The impacts of that have already forced and compelled
• 32:30 - 33:00 me to adjust the budget that I will be submitting in May The May revise will reflect a downgrade in economic outlook in this state I have been meeting consistently in the last few weeks with economists not only state economist independent economists universally They have significantly downgraded the GDP projections for the state of California next year have increased as a consequence of this toxic
• 33:00 - 33:30 uncertainty the likelihood that our unemployment rate will go up not down and that the environment will precipitate in higher inflation All of those things will endure to slower economic growth less capital gains revenue and a significant from my humble perspective How significant stay tuned to the May 15th revise re um change in our projections
• 33:30 - 34:00 as it relates to revenue collection and an adjustment into our baseline spending in order to submit as I'm constitutionally required a balanced budget So the impacts on the budget of this state are already being felt and the full impacts have yet to be fully felt Sorry One second
• 34:00 - 34:30 just also a county that is largely Trump Why do you think the president will not budge on this well I look I I want to give the president his due in this respect Um I'm old enough to remember um in the 1980s I think it was a full page ad that President Trump at the time Donald Trump businessman put out um complaining about trade policy in the United States visav
• 34:30 - 35:00 Japan He's been very consistent on this issue for decades and decades I give him his due in that respect Um you saw in the first administration I talk about crony capitalism I didn't say that lightly That comes from the basis of an independent analysis of waiverss that were provided in the first Trump administration and how they were directly connected to donors to the
• 35:00 - 35:30 Republican party He's been consistent for years and years but this rationale across the board 10% tariffs the irrational determination of 145% uh in China the fact that he negotiated what he said was a great trade deal the USMCA and now he's trashing his own deal shows a level of recklessness
• 35:30 - 36:00 that even I did not anticipate and I imagine many of his supporters may not To your question I'm here because I come here often I'm here because I have a responsibility uh to support people like Christine and those that Chris represents Uh I'm here not because folks here I'm very mindful voted for uh me or even Kla Harris I'm here because they
• 36:00 - 36:30 matter and we care And I'm here because they're disproportionately going to be hurt by this by the guy that's betrayed them Donald Trump is betraying the people of the Central Valley He is betraying the people that supported him Donald Trump has turned their back his back on his supporters We will not turn our back on those that supported Donald Trump We will have their back That's why I'm back in the
• 36:30 - 37:00 Central Valley Some exemptions for big companies in California have been made What about small business that's it That's part of that's what that's by definition crony uh capitalism because your fancy CEO may have gotten that cell phone and you made the call That's why I predicated what I said as it relates to those cell phones on the work I've done for small business as as a as a foundational point and and that's why we're here with a small with small businesses Um but that's exactly
• 37:00 - 37:30 right What's their representation and that's where states come in That's where a state of mind to push back to be firm to be resolved Um come in That's where leadership comes in Speaker Johnson It's where leadership comes in Accountability responsibility Speaker Johnson to have the back of small businesses you claim to represent Where the hell is Congress the best of the Greek democracy the Roman Republic Three branches of
• 37:30 - 38:00 government independent co-equal branches of government Popular sovereignty the rule of law The rule of law You saw a federal judge today on contempt charges against the administration or at least asserting probable cause for contempt charges criminal charges against the Trump administration on the fundamental rule of law the principles of our founding fathers the 250th anniversary of this great republic we're about to celebrate that has held this place
• 38:00 - 38:30 together that has bound us together All of that being challenged a recklessness a wrecking ball to the principles of our founding fathers So I'm sorry to you ask me if I'm angry I'm I'm resolved That's all And uh and I'm proud of this state and uh I'm proud to have an attorney general and a legislature that get it And I'm proud to uh have this gift of uh having some agency uh
• 38:30 - 39:00 and uh and having a little authority as governor to push back against this at this moment Governor along the lines of the budget can you talk a lot of federal funding on the line are you concerned about the administration well let me remind you guys of this Um California last year as a donor state provided $83.1 billion may be worth actually writing this down $83.1 billion we provided more to
• 39:00 - 39:30 the federal government than we received By the way Texas received $71.1 billion more than they provided the federal government So I'll just remind you that California as a donor state the balance of the books provided $83.1 billion Texas took $71.1 billion top four states that were donor states all blue states Interesting fact So when it comes
• 39:30 - 40:00 to federal support we would expect to be treated fairly And I say this as a donor state that doesn't even get back all of the money that we provide the federal government I'm proud to have the backs of states that are struggling I'm proud to have the back of Speaker Johnson's state when they were struggling because of the hurricanes as a taxpayer I was proud to support them and uh I would hope the same would be extended and I expect it will be Uh that's above politics Um you know I
• 40:00 - 40:30 spend 90 minutes in the Oval Office with the president I've been on the phone with him on multiple occasions Um I'll work with President Trump on issues any day of the week that we can work together to advance the cause uh that uh I think bind us together and that's cause of this state and the fact that we're the ten pole of the American economy The cause that I think unites us across this country in relationship to this state and that's my state of mind and I'll maintain it I deeply disagree
• 40:30 - 41:00 with them on this I think the overwhelming majority of Americans agree with our position and disagree with his And I hope they also would find it uh in their hearts to support those in need American citizens that happen to live in the state of California as it relates to recovery efforts uh in Los Angeles And one last point 75% of the lumber that the United States imports comes from Canada I'll repeat that 75% of the lumber that we import comes from
• 41:00 - 41:30 Canada The cost of rebuilding have already been impacted by these tariffs in Southern California The cost of housing has gone up The cost of the recovery has gone up I could cite over and over specific examples We haven't even fully absorbed to your earlier question the magnitude of the economic costs already of the recklessness of these tax increases
• 41:30 - 42:00 these tariffs Last question Yeah it's a it's a you know this is the distraction of the day The art of distraction Don't get distracted by distractions we say And here we zig and zag Um this is the debate they want
• 42:00 - 42:30 This is their 8020 issue as they've described it You know those that believe in the rule of law defending it but it's a tough case because people are really are they defending MSR13 are they defending you know someone who's out of sight out of mind in El Salvador i mean we're perfect sheep So I want to answer your question I don't know I add much value answering it I mean are you kidding me come on I remember I saw some pundit the other day I remember that Newsome guy when he did gay marriage in 2004 The
• 42:30 - 43:00 hell is he talking about he's kept marrying people 4,036 couples from 46 states and six countries What about the rule of law well maybe they forgot The judges said there was no irreparable harm And when the judges the California Supreme Court said we should stop we stopped immediately It wasn't even in question When a judge adjudicates it's not a question How in the hell are we even debating that it's Orwellian that you're debating
• 43:00 - 43:30 that And it's exactly the debate they want because they don't want this debate on the tariffs They don't want to be accountable to the markets today They don't want to answer for Nvidia taking a $5.5 billion charge They don't want to have a real conversation with Christine and what's going on in terms of the export uncertainty here in the valley They want to have this conversation Don't get distracted by distractions We're all perfect sheep Thank you guys very much