Newsom says California seeks tariff exemptions from trade allies

(Bloomberg / Sarah McGregor) — Governor Gavin Newsom said he’s seeking exemptions for California-made products from retaliatory tariffs and wants to open talks with global allies over new trade relationships, casting the state as a buffer against the fallout of Donald Trump’s sweeping tariff plan.

In a post on X on Friday, Newsom said that he has directed his administration to reassure allies that “California remains a stable trading partner,” even as Trump pushes for a 10% across-the-board tariff on imports and steeper tariffs for some nations.

“Donald Trump’s tariffs do not represent all Americans,” Newsom said. “TO OUR TRADING PARTNERS AROUND THE GLOBE — California is here and ready to talk.”

California accounts for roughly 14% of the nation’s gross domestic product and ranks as the fifth-largest economy in the world. Newsom said that economic weight — paired with the state’s population of 40 million — gives California leverage on the global stage.

But it also makes California more vulnerable to global trade disruptions, particularly as major US trading partners begin to retaliate. On Friday, China announced it would impose a 34% tariff on all US imports starting April 10, mirroring the rate of Trump’s proposed “reciprocal” tariffs. A day earlier, Canada said it would tax US auto imports in response to Trump’s move to slap new tariffs on foreign-made cars.

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The state is a key player in agriculture and US manufacturing, including semiconductors, computer equipment and vehicles — sectors that are being targeted in the trade dispute.

California exported $24 billion in agricultural goods in 2022, nearly 13% of total US farm exports. Almonds topped the list at $4.7 billion, followed by dairy products, pistachios and wine. Top buyers include Canada, the European Union, China and Hong Kong.

In the X post, Newsom linked to a Fox News report citing a senior administration official who said the state is concerned about rising rebuilding costs after January’s wildfires around Los Angeles and the potential for trade disruptions in the California-Baja border region.

Much of the manufacturing in that area depends on cross-border supply chains, where components often travel back and forth between factories several times before becoming finished products.

–With assistance from Alicia Clanton.

(Updates with California trade details from fourth paragraph.)

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