California’s economy has outpaced Japan’s, securing its position as the fourth-largest economic powerhouse globally. Gov. Gavin Newsom announced the milestone on Thursday, citing data from the International Monetary Fund and the U.S. Bureau of Economic Analysis.

The Golden State’s gross domestic product reached $4.10 trillion in 2024, surpassing Japan’s $4.01 trillion. California now trails only Germany, China, and the United States as a whole in economic might.

“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom declared.

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NEW: California is now the FOURTH largest economy in the world.

Last year, the Golden State’s GDP topped $4.1T — surpassing Japan ($4.02T) and behind only Germany ($4.65T), China ($18.74T), and the entire U.S. ($29.18T). pic.twitter.com/6k1rR9GttL

— Governor Gavin Newsom (@CAgovernor) April 24, 2025

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However, the governor expressed concern about President Donald Trump’s tariff policies, which have caused global market disruptions. Newsom, a potential 2028 presidential candidate, has filed a lawsuit challenging Trump’s authority to impose these levies.

Trump’s administration has implemented widespread tariffs, including a 10% levy on most imports and higher rates on specific countries. The ongoing trade war with China has seen tariffs reach up to 145% on Chinese goods, with China retaliating with a 125% tax on American products.

“While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration,” Newsom cautioned. “California’s economy powers the nation, and it must be protected.”

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Trump maintains that his trade policies aim to level the playing field and bring jobs back to the U.S. The tariffs are a key component of his economic strategy, along with interest rate cuts to reduce borrowing costs for Americans.

Meanwhile, Japan’s economy faces challenges due to its aging population, leading to a shrinking workforce and increasing social care costs. The IMF recently lowered its economic growth forecast for Japan, citing the impact of higher tariffs.

Read more at BBC News