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Canadian Economy and Markets Canadian National News

California Gov. Gavin Newsom said Wednesday that the nation’s most populous state will file a lawsuit challenging President Trump’s authority to impose sweeping tariffs that have set off a global trade war.

The suit will argue that 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.

The lawsuit, which will be filed in the U.S. District Court for the Northern District of California, will also argue that enacting such tariffs requires approval from Congress, Newsom’s office said in a news release.

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.

Newsomsays the tariffs in effect have resulted in inflated costs and billions of dollars in damage in …

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