California Gov. Gavin Newsom has directed his administration to explore direct trade relationships with exporters, aiming to bypass retaliatory tariffs imposed by the US Customs and Border Patrol under President Donald Trump. In a move to protect California’s economic interests, Newsom urged international partners to spare the state’s goods from tariffs, citing concerns over the impact on workers, manufacturers, and businesses.
Newsom stated that California will remain a reliable partner for foreign trading partners, despite turmoil in Washington. However, he did not specify how his administration would bypass federal trade policies, leaving uncertainty about the effectiveness of this approach. The governor emphasized rebuilding efforts in Los Angeles after the L.A. fires would be hindered by securing construction materials impacted by Trump’s tariffs.
The US has imposed a 10% tax on imports, with varying rates on Chinese, European Union, South Korean, Japanese, and Taiwanese goods. Economists predict other countries will follow with their own tariffs, affecting Mexico, Canada, and China, which purchase nearly $67 billion in California exports. The move could cost the average household an additional $3,400 to $4,200 per year.
Newsom’s office highlights the need for mitigation and expanding foreign market share, particularly during a challenging time in the US farm economy. The governor’s push for direct trade deals aims to mitigate the impact of retaliatory tariffs on California’s economy and protect its workers and businesses.
Source: https://gvwire.com/2025/04/04/newsom-wants-to-bypass-trump-tariffs-with-direct-ca-trade-deals