California Governor Newsom Defies Trump Tariffs, Vows Open Trade with China

California Governor Gavin Newsom recently reaffirmed his state's commitment to maintaining open trade with China, despite the significant economic damage inflicted by the Trump administration's tariff policies. In an interview, Newsom emphasized that California has long been a reliable trading partner for China, with numerous cooperation agreements signed between the state and various Chinese provinces, cities, and counties. During his visit to China last year, Newsom extended these connections to the national level, underscoring California's openness to trade with all partners, including China.

Newsom's stance reflects a broader effort to counter the protectionist policies of the previous administration and to foster economic ties with China, which remains a crucial market for California's exports. He highlighted that global trade is not a zero-sum game, and that countries are interdependent. This perspective is particularly relevant for California, which has extensive trade ties with Asia and a highly integrated supply chain in the tech sector. The Trump administration's tariffs have had a profound impact on various industries in California, including tourism, trade, small businesses, and large enterprises. The reputational damage and economic losses, both direct and indirect, have been substantial, amounting to tens of billions of dollars.

In response to the Trump administration's announcement of "reciprocal tariffs" in April, Newsom urged other economies outside the U.S. not to impose retaliatory tariffs on goods from California. California became the first state to sue the Trump administration over tariff issues, demonstrating its proactive stance against protectionist measures. Newsom also emphasized the significant geographical and ideological distance between California and Washington, D.C. He noted that California's values and approach to governance differ markedly from those of the federal administration, positioning the state as a leader in opposing the Trump-era policies.

California's economic strength is unparalleled among U.S. states. Newsom announced that, based on authoritative data, California's nominal GDP for 2024 has surpassed that of Japan. If considered as a separate economic entity, California would rank fourth globally, behind only the U.S., China, and Germany. This economic prowess underscores California's ability to navigate global trade dynamics and its commitment to maintaining open and mutually beneficial trade relationships with China and other partners.