California's democratic governor Newsom wants to weaken the consequences of Trump's customs policy. The big question is: How does he do that without exciting Trump? And is there more behind it?
Donald Trump's tariffs do not stand for all Americans, especially not for those I represent – here in California, the fifth largest economy worldwide.
Governor Gavin Newsom recently commented on social media. The Democrat has many reasons to be afraid of the effects of extreme tariffs and an economic war.
Because it is true that California is an economic power. With 14 percent, the state has the largest share in the US gross domestic product. California generated more than four trillion dollars in 2024. Only the United States (without California), China, Germany and Japan had a larger gross domestic product.
Foreign trade has a large proportion of California's economic output, said politico business editor Jeremy B. White on the television broadcaster Fox. The broadcaster is considered the house channel of the Republicans. “California is a great food exporter and some of the largest US ports are there,” said White. A number of sectors are directly affected by extreme tariffs. To alleviate the economic consequences must be in the governor's interest.
Effects on film business and tech industry
Filmmbusiness and tourism also have a share in foreign trade. The fact that significantly fewer people traveled to the United States in March than in the previous year also attribute observers to Donald Trump's politics. The tech area is both about services and products: Experts currently assume, for example, that Apple may be significantly increasing the prices for new products because of the tariffs.
Another prime example of impending consequences is agriculture, said Max Gorden from the Fox Business Channel: California exports more food than any other US state. Newsoma is therefore generally concerned, but “especially because almonds in the USA are grown exclusively in California and the most important export fruit is,” it said.
California Almond production in danger
The almond producers in California had already struggled with losses through tariffs that had imposed China in 2018. At that time it was almost one billion dollars. After the latest Trump announcements, important customers had already announced new tariffs who could reduce sales or profit margin, Gorden said. “The most important buyers are the EU, India, the United Arab Emirates, China and Japan – the EU and China are already planning against duties.”
But that doesn't have to be, says California's governor. In contrast to the changeable Donald Trump – California is still a reliable trading partner and partnership -based relationships: “We value international trade. We hope to further strengthen these relationships,” emphasizes Newsoma, and also sends a clear message to its trading partners: “California remains a stable strength, and we hope that in relation to products from California take into account.”
Specifically, Newsom asks the foreign trading partners to exclude California products and services from counter -tariffs.
Newsom has its own possibilities, but limited
Does that mean that German products that come onto the market in California could be spared the Trumps tariffs? In the past, California has already implemented its own interests towards Washington, says political editor Jeremy B. White. “We also saw this in the first Trump legislature when California negotiated stricter pollutant limit values with the car manufacturers.” Customs are a complex matter, but at the same time it is common practice that California acts differently than Washington.
Customs are actually a complex matter – on the one hand. On the other hand, it is very simple: tariffs are set by the administration in Washington, for all states.
So Newsom has its own options. They are, for example, to cushion the consequences of the customs dispute with money from the state treasury, so that the price increases for imported goods and services are steamed, exporters have fewer sales losses or the profit margin is less reduced. However, this cannot necessarily afford California – despite economic strength. Because apart from the question of how this would have to be financed, around 30 percent of the household are disputed with money from the federal government – and Trump could make California very difficult to live over this lever.
“Donald Trump and his environment have already threatened to stroke help for fire protection according to the forest fires of Los Angeles – that is definitely a great concern to many in the California parliament,” says political editor White. It is now about weighing up “when you are nice and when you hold it”.
Does newsom position itself for 2028?
Newsoma can be removed that he generally stands for a different policy than Trump. Perhaps the governor is also concerned with his recent statements to stand up for a possible presidential candidacy in 2028. According to the motto: Trump does not bring the prices down and the economy forward, but vice versa.
For a few months now, Newsom has had its own podcast, in which he is presenting himself with friend and enemy – probably also to make people in other states curious, for whom California has become a real enemy. The recent episode dealt with the question of whether the “day of liberation” called out by Trump was not “day of recession”.
Opposition work, without stimulating
Newsom has been traded as a possible democrat presidential candidate for years. And since he is not allowed to run as a governor again, he is now trying to get both in several ways: to operate opposition – and not provoke any punitive measures. Or how political editor White puts it: to bring California forward without stimulating Trump.
At the same time, Newsom tries another balancing act: on the one hand, he wants to protect social achievements and on the other hand, take into account surveys that many consider California politics to be too liberal. Almost exactly a month ago, he said in his podcast, transfers earned protection, but when trans athletes apply in women's sports competitions, it was simply unfair.
Just a few days earlier, Trump had signed an executive order to exclude trans athletes from women's sports.