- California Gov. Gavin Newsom is pushing for exemptions on retaliatory tariffs for the state’s exports, particularly almonds, dairy and wine. His plan is a response to President Trump’s new tariff policy, which includes a baseline 10% tax on imports.
- The state is the fifth-largest economy in the world and is highly dependent on international trade.
- President Trump defends the tariffs as a strategy to encourage domestic manufacturing.
Full Story
California Gov. Gavin Newsom, D, is urging world leaders to exempt California-made products from retaliatory tariffs as new U.S. trade policies take effect.
According to Fox News, officials in the governor’s administration told the outlet that Newsom will direct the state to establish “strategic relationships” with countries imposing retaliatory tariffs. He will also request exemptions for California products from these additional taxes.
Response to Trump’s tariff plan
Newsom’s initiative is a direct response to President Donald Trump’s newly implemented tariff plan, which imposes a baseline 10% tax on all imports. Some trading partners face even higher tariffs.
For California, a significant concern is the impact on the state’s almond industry. The state produces 80% of the world’s almonds, with almond exports accounting for 20% of California’s $23.6 billion agricultural sales.
Newsom’s staff warns that retaliatory tariffs from countries such as China, India and the European Union could cost the industry billions.
According to Newsom’s staff, other at-risk exports include dairy products, pistachios, wine and walnuts.
Economic impact on California
California, the world’s fifth-largest economy, relies heavily on international trade. The state has a gross domestic product of $3.9 trillion — 50% larger than Texas. It is also the largest importer in the U.S. and the second-largest exporter, behind Texas.
Newsom’s administration has also raised concerns about tariffs affecting construction materials imported into the U.S. Officials warn that these tariffs could delay rebuilding efforts following Los Angeles wildfires.
Trump defends tariffs
President Trump continues to defend his tariff policy, calling it “Liberation Day” for the U.S. He argues that the plan is designed to level the playing field with countries that impose high taxes on American products. Trump also sees tariffs as an incentive for companies to manufacture in the U.S. to avoid extra costs.
Following the tariff announcement, stock markets experienced their worst day since the COVID-19 pandemic. However, Trump stated Thursday, April 3, that the stock markets will “boom.”
