California sues Trump admin over 'rogue and erratic' tariffs

California has become the first state in the union to take the Trump administration to court over the president's unilaterally-declared tariffs on the rest of the world.

Golden State Governor Gavin Newsom made the announcement Wednesday morning, and provided more details during a press conference alongside Attorney General Rob Bonta hours later.

"We're here because President Trump's rogue and erratic tariffs are wreaking havoc on our nation's financial systems, and causing uniquely immense harms to California's economy," Bonta said. "Together with Governor Newsom, I'm filing our 14th lawsuit against the president in less than 14 weeks, this one challenging the tariffs he unlawfully imposed under the International Emergency Economic Powers Act."

Bonta argued that Trump was acting "as if he's above the law," and noted that the goal of the lawsuit is to get the court to "rein in the president."

"He is yet again violating the US Constitution, overriding Congress' authority, and breaching the separation of powers," he continued. "It's simple, Trump doesn't have the authority to impose these tariffs. He must be stopped."

The attorney general explained that the countries Trump has taken particular aim at — China, Mexico, and Canada — are also California's top three trade partners, accounting for 40% of the state's imports and over one third of exports.

The lawsuit centres around Trump's use of the International Emergency Economic Powers Act, which Bonta claimed "does not apply" in this case. He noted that to make it appear as though such actions were warranted, the president has "had to resort to creating bogus national emergencies that defy reason."

He cited Trump's claims about America's neighbours to the north, and pointed out that contrary to what's been coming out of the White House, "less than 1% of fentanyl and illegal crossings actually come from Canada."

"The Constitution gives Congress the power of the purse," Bonta added. "It's Congress' responsibility to set and collect taxes, duties, and excises, including tariffs, not the president's. 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."

Newsom echoed Bonta's sentiments, describing the current mood as "toxic uncertainty."

"No state is poised to lose more than the state of California," he said. "That's why we're asserting ourselves on behalf of 40 million Americans. 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 increase in modern US history."

The governor slammed Trump for targeting and threatening to annex Canada, asking, "what the hell do we have on the Canadians?"

He encouraged Canadians to come to California, noting that the mindset there was far different from that in the White House.

In a statement to CNBC, White House spokesman Kush Desai responded to news of the lawsuit.

"Instead of focusing on California's rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump's historic efforts to finally address the national emergency of our country's persistent goods trade deficits," he said. "The entire Trump administration remains committed to addressing this national emergency that’s decimating America's industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations."