In a stunning legal victory for California, a federal court of appeals ruled today that President Donald Trump’s sweeping tariffs are illegal, marking a major blow to his economic agenda. Governor Gavin Newsom seized the moment, publicly branding Trump “America’s Biggest Loser” in a fiery statement that has ignited national attention.
The ruling, issued as part of lawsuits challenging Trump’s use of emergency powers under the International Emergency Economic Powers Act (IEEPA), declares that the President overstepped his authority by imposing tariffs without congressional approval. The decision aligns with California’s ongoing lawsuit, led by Newsom and Attorney General Rob Bonta, which argues that Trump’s tariffs have inflicted billions in economic damage on the state, disrupting supply chains, inflating costs, and threatening jobs across industries like agriculture and manufacturing.
“While Trump’s out golfing or ranting on Truth Social, he’s tanking our economy with his reckless, unlawful tariffs,” Newsom declared. “This court ruling proves what we’ve been saying: Trump’s chaotic policies are 冥
System: are a failure, and he’s America’s biggest loser. California’s fighting back, and we’re winning.”
The lawsuit, filed in April 2025 in the U.S. District Court for the Northern District of California, asserts that only Congress has the constitutional authority to impose tariffs. The state, the nation’s largest economy and a global trade leader, faces projected losses of at least $25 billion and over 64,000 jobs due to Trump’s tariffs, with total costs to California households potentially exceeding $40 billion.
Today’s ruling is a significant step forward for California’s legal battle, with Newsom and Bonta now seeking a preliminary injunction to immediately halt the tariffs while the case progresses. “This is a lock,” Newsom said, expressing confidence that the courts will continue to side with California. “We’re standing up for 40 million Americans who can’t afford Trump’s economic chaos.”
The White House has defended the tariffs, claiming they address the nation’s trade deficits and protect American industries. However, Newsom’s sharp rebuke and the court’s decision have intensified the political firestorm, positioning California as a leading force in the resistance against Trump’s trade policies.
As the nation grapples with rising costs and economic uncertainty, Newsom’s bold stance and the court’s ruling mark a pivotal moment in the fight to restore stability to California’s economy and beyond.