Gov. Gavin Newsom directed his administration to look into making direct trade deals with other countries in hopes to bypass retaliatory tariffs. (GV Wire Composite/David Rodriguez)
- Gov. Gavin Newsom asked other countries to not impose retaliatory tariffs on California goods.
- Newsom directed his administration to begin looking at making direct trade relationships with exporters.
- He did not specify how he would bypass tariffs administered by the U.S. Customs and Border Patrol.
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Gov. Gavin Newsom on Friday asked exporting countries worldwide to spare California their retaliatory tariffs, saying he plans to pursue direct relationships with foreign trading partners.
“To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come,” Newsom said in a news release. “No matter the turbulence coming out of Washington. California is not Washington D.C.”
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Unclear How Newsom Can Bypass Federal Trade Commission
Newsom did not specify in his late Friday release how he could bypass President Donald Trump’s protectionist policies.
He said he would direct his administration to identify “collaborative opportunities with trading partners that protect California’s economic interests — workers, manufacturers, and businesses — and the broader supply chains linked to the state’s economy.”
California’s three major container ports in Oakland, Los Angeles, and Long Beach carry about half of the nation’s total container cargo volume, according to the Port of Oakland. About 74% of Oakland’s trade comes from Asia.
Newsom’s release stated rebuilding after the L.A. fires would be much more difficult as securing construction materials would be impacted by Trump’s tariffs.
Trump’s tariff actions, which took effect Wednesday, seek parity with other countries’ duties on American goods.
Related Story: President Trump’s Tariffs Could Be the Political Tipping Point
The U.S. Customs and Border Patrol imposed a baseline 10% tax on imports, with a 34% tax on Chinese goods, a 20% tax on European Union goods, 25% on South Korea, 24% on Japan, and 32% on Taiwan, according to the Associated Press.
Economists expect other countries to follow suit with tariffs of their own.
Mexico, Canada, and China buy nearly $67 billion in California exports, according to Newsom’s office.
The Budget Lab at Yale University estimates a 20% universal tariff would cost the average household an additional $3,400 to $4,200 a year.
“Retaliatory tariffs also impact farmers and ranchers during a difficult time in the U.S. farm economy — fostering a greater need for mitigation and expanding foreign market share,” the release stated.
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