California Governor Gavin Newsom said on Friday that he would seek to explain the world leaders for the reasons why they should exempt his state from reprisal actions in the last tariff cycle of President Donald Trump.
“To our business partners from around the world – California is there and ready to speak,” wrote Newsom on X. “We will not stay dotted during the Trump tariff war.”
In a video accompanying his message, Newsom said: “Donald Trump’s prices do not represent all Americans”.
“Today, I ordered my administration to seek new opportunities to extend trade and remind our business partners around the world that California remains a stable partner,” said Newsom.
Trump did a tour of the markets on Wednesday when he announced “reciprocal prices” radical for a long list of nations, including the European Union, South Korea, Japan and India. China was particularly affected because the latest Trump prices cycle was combined with existing prices, which relates the total to Chinese products at 54%. The shares continued to crater on Friday, the Dow dropped by approximately 4% of the afternoon.
Newsom’s comments rekindle the longtime quarrel between the most populous state in the country and Trump. The White House has lost shortly time.
“Gavin Newsom is expected to focus on out-of-controllessness, crime, regulations and non-deputy in California instead of trying to try the international agreement,” said White House spokesman Kush Desai, in a statement.
Challenger potential in 2028, Newsom also approaches, if not to cross squarely, the legal line between the federal power and the State.
Trump’s first administration continued California after the government of the time. Jerry Brown has negotiated a climate change agreement with the Canadian province of Quebec after Trump announced his intention to withdraw the United States from the Paris climate agreement. California won at the lower land level, but the dispute has never been entirely resolved when the Ministry of Justice of President Joe Biden abandoned the case in April 2021.
Presidents have radical tariff powers, but the real line between what states can do with foreign countries is a bit foggy.
The Constitution obliges states to obtain approval from the congress “to conclude any agreement or compact” with a foreign country. However, many states have ignored it for decades, and legislators did not seem to worry about it.
Like Curtis A. Bradley, professor of law at the University of Chicago, wrote in 2023, the federal government sometimes encouraged states to conclude their agreements.
“In practice, US states almost never seek convention approval for their agreements with foreign governments, and the number of unsuccessful agreements has increased substantially in recent years,” wrote Bradley.
Many states send commercial delegations abroad. In the past, some have also sought to restrict business with specific countries, especially during the anti-apartheid movement against South Africa in the 1980s.
In 2000, the Supreme Court unanimously judged that the Massachusetts could not alone prohibit its government agencies from carrying out business with Burma since Congress had already adopted sanctions in Myanmar.
Congress has the ultimate power to check Trump’s prices, but the Republicans have proven to be reluctant to do so. On Wednesday, the Senate voted to block Trump’s prices in Canada, although this bill should not pass the house under republican control.
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