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California sues to stop Trump from imposing sweeping tariffs NBC Bay Area [Video]

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Canadian Economy and Markets

California Gov. Gavin Newsom sued the Trump administration on Wednesday, challenging the president’s authority to impose sweeping tariffs that have set off a global trade war.

The lawsuit argues that President Donald Trump’s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and China or a 10% tariff on all imports is unlawful. The act enables a president to freeze and block transactions in response to foreign threats but doesn’t allow the president to adopt tariffs, the suit argues.

The lawsuit, which was filed in the U.S. District Court for the Northern District of California, also argues that enacting such tariffs requires approval from Congress.

Trump has offered many justifications for increasing tariffs, including that they are designed to spur U.S. manufacturing and stop the flow of illicit fentanyl into the country. California’s move follows rapidly changing tariff plans by the Trump administration.

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