Fighting on All Fronts: Attorney General Bonta Files Motion to Stop President Trump’s Destructive Tariffs

Economic chaos, higher prices, lower wages, empty shelves — California is bracing for impact

OAKLAND — California Attorney General Rob Bonta and Governor Gavin Newsom will today file a motion for preliminary injunction with the U.S. District Court for the Northern District of California to stop the Trump Administration’s illegal tariffs while litigation in their case proceeds. On April 16, Attorney General Bonta and Governor Newsom filed a lawsuit challenging President Trump’s unlawful use of power to impose tariffs and direct agencies within the administration to implement and enforce those tariffs without the consent of Congress. President Trump’s illegal and erratic tariffs are wreaking havoc on the U.S. financial system and causing uniquely immense harm to California’s economy — a major driver of our national economy. The tariffs challenged under California’s current lawsuit are projected to cost California consumers $25 billion dollars and result in the loss of over 64,000 jobs. The totality of the Trump Administration's tariff regime is expected to cost households approximately $40 billion. 

In addition to the forthcoming motion for a preliminary injunction, Attorney General Bonta and Governor Newsom will also be filing an amicus brief as early as today in the Court of International Trade in Oregon v. Trump, a case challenging President Trump’s illegal imposition of so called “emergency” tariffs. 

“Last fall, Americans at the voting booth demanded lower prices. Now, Trump’s chaotic tariff war is threatening to skyrocket the cost of living for families, lower wages, slash jobs, and throw business owners and innovators into a spiral of uncertainty,” said Attorney General Rob Bonta. “Let me be clear, uncertainly and unpredictability are bad for business, bad for the economy, and bad for California. California is set to experience an outsized share of losses due to our larger economy, workforce, and exposure to trade. We are pulling out all the stops and will today ask the court to immediately halt these illegal tariffs while California argues its case.”

“President Trump has overstepped his authority, and now families, businesses, and our ports are literally paying the price,” said Governor Gavin Newsom. “As the largest economy in the nation, California has the most to lose from President Trump’s weak and reckless policies.”  

“As tariffs continue to drive up costs and disrupt supply chains, it’s our local small businesses — especially those owned by Latino entrepreneurs — that are being hit the hardest. At the Sacramento Hispanic Chamber of Commerce, we’re doubling down on our efforts to support these businesses through tailored resources, technical assistance, and advocacy. From helping members navigate cost increases to connecting them with local and state programs, we’re ensuring they don’t face this economic uncertainty alone,” said Cathy Rodriguez-Aguirre, President & CEO of Sacramento Hispanic Chamber of Commerce. “We appreciate Governor Newsom and Attorney General Bonta for stepping in with bold leadership. Local chambers are proud to be on the frontlines, offering stability, solutions, and a strong voice for the small business community during this challenging time.” 

“After 38 years in business, our very survival is at stake. We’re proud to have always manufactured in America, but our ability to be cost competitive has been threatened, and of course, that puts our jobs at risk,” said Robert Farnsworth, President & CEO of Sonnet Technologies. “We need a predictable supply chain with fair prices, and we can’t get that now.” 

“American families and businesses are already grappling with high costs, and tariffs will only make matters worse," said Maria S. Salinas, President & CEO of the Los Angeles Area Chamber of Commerce. "We urge policymakers to reconsider, seek alternatives and reverse course.” 

CALIFORNIA IMPACTS 

As the largest economy in the nation — and the fourth largest in the world — President Trump’s illegal tariffs are having a profound impact on California’s budget and how the state can meet the needs of its residents.  

As the country’s largest importer and second largest exporter, California is also more trade-dependent than many states — ports account for much of the country’s import needs, livelihoods, and California relies on these ports for supplies. Many agencies, including the California Department of Public Health, contract with vendors to purchase critical goods which were manufactured outside the United States, including over $8 billion in pharmaceuticals, $300 million in diabetes related supplies, $3 million in pediatric and adult flu vaccines, $700,000 in disease testing kits, among other critical goods. Due to the President’s tariffs California is now facing an impossible choice: accept price increases, no matter how high, resulting in economic harm — or cancel contracts, resulting in economic harm and/or leaving Californians without essential goods.  

Additionally, California is expected to lose a staggering $7.8 billion in tax revenue from personal income tax and corporate revenue as a result of the tariffs’ impact on California taxpayers. This extraordinary loss of essential revenue is exacerbated by the unpredictable and chaotic approach to imposing tariffs which has made it extremely difficult for California and its agencies to effectively budget, plan for the future, and properly serve Californians.

The harms from the current tariffs and their uncertain nature are reflected in California’s recently downgraded economic projection for the 2025-2026 Governor’s Budget. Specifically, this forecast projected increased unemployment and near-term inflation and considerably downgraded projected wage and salary growth, as well as job and personal income growth. These fiscal impacts from tariffs have immediate and devastating effects on the California’s budget, which in turn will yield deep cuts to the state’s programs and services. 

BACKGROUND

In the past few months, President Trump has issued over a dozen executive orders imposing, pausing, reimposing, and escalating tariffs on every U.S. trading partner, and claimed authority to do so under IEEPA.  New tariffs are chaotically contemplated, announced, or delayed nearly every day. The uncertainty surrounding the tariffs is itself causing immediate harm to California by incapacitating its ability to budget and plan for the future and chilling the economy — as businesses and people pause decision-making and lose out on opportunities. 

While difficult to calculate due to their frenzied nature, most estimates put the new average tariff rate at or above 25%. The current IEEPA tariff regime imposes a universal tariff of 10% on all U.S. trading partners, with tariff increases as high 50% on more than 50 specific trading partners set to go into effect on July 9, 2025.  

Separately, Canada and Mexico are subject to IEEPA tariffs of up to 25%, which are currently in effect after being paused and then re-started. China is subject to an ever-changing combination of IEEPA tariffs that reached a staggering rate of 145%, and as of the publication of this press release, plummeted down to 30% under the 90-day pause. The claimed rationales for each of these tariffs is wide-ranging and difficult to follow from trade deficits and foreign trade practices to immigration, crime, and illicit drugs. In response to President Trump’s tariffs, major U.S. trading partners including China, Canada, and the European Union have imposed or announced retaliatory tariffs — China’s retaliatory tariffs alone reached 125%.

NATIONWIDE IMPACTS

The impact of President Trump’s unprecedented IEEPA tariffs is devastating and unprecedented. The near-daily threats to impose new tariffs have already inflicted and continue to inflict serious financial harms on California and states across the nation — with the largest burden expected to fall on the poorest Americans, who cannot absorb the loss of wages or the greater cost of goods. 

President Trump’s tariff regime will:

• Reduce Americans’ incomes and productivity: Tariffs are expected to reduce the labor supply by 546,000 full-time jobs. 
• Cause higher prices and less availability of goods, leading to goods shortages and supply chain disruptions: The Port of Los Angeles saw a third of import volume disappear as of the first week of May, which will hit the availability of goods in stores in only a few weeks. 
• Wreak havoc on our financial systems: The U.S. stock market suffered the largest two-day loss in its history in the two days following the announcement of President Trump’s most sweeping tariffs. 
• Generate enormous economic damage to both the U.S. economy and the California economy: Tariffs, on net, reduce production, income, and efficiency. 
• Raise the probability of a recession: Recessions are damaging to public finance and state budgets — budget pressures can also mean cessation of spending in areas of pressing need, such as public safety, education, and disaster preparedness.

A copy of the filing will become available here at a later time.