Golden State Today

Governor Gavin Newsom has voiced his concerns regarding the Trump Administration's decision to impose tariffs on goods from Canada, Mexico, and China. In a statement released today, Newsom said, “Tariffs are nothing more than a tax on hardworking American families — driving up the cost of groceries, cars, and essential goods.”

California plays a significant role in international trade as the fifth-largest economy globally and the largest importer in the United States. It is also the second-largest exporter in the country. The state heavily depends on trade with Mexico, Canada, and China for manufactured goods and agricultural products that provide employment across California. In 2024, over 40% of California's imports came from these three countries, amounting to $203.3 billion out of a total of $491.5 billion imported.

The imposition of retaliatory tariffs is expected to affect California businesses and exporters adversely. With Mexico, Canada, and China being California’s top three export destinations, any disruption could have significant economic implications. Additionally, tariffs are likely to impact builders by limiting access to essential construction materials needed for reconstruction efforts following the Los Angeles fires.