California Is America’s Engine. Tariffs Risk Stalling It [Video]

California powers the nation’s economy—from Silicon Valley’s innovation to the Central Valley’s agriculture and the bustling ports of Los Angeles and Long Beach. But President Donald Trump‘s new program of tariffs threatens to put the brakes on the state’s economic growth.

The White House last week imposed a 10 percent baseline tariff on all imports, with higher rates on countries running trade surpluses—34 percent on China, 20 percent on the EU, 25 percent on South Korea, 24 percent on Japan and 32 percent on Taiwan. Mexico and Canada remain exempt from the new tariffs but still face a previous 25 percent levy.

Trump’s announcement immediately sent the markets into turmoil on Thursday, with Wall Street recording its worst day since 2020, when COVID-19 was in full swing. By market close on Monday, the S&P 500 slipped 0.2 percent, while the Dow JonesIndustrial Average dropped 349 points, or 0.9 percent. However, U.S. stocks …