Governor Gavin Newsom Urges Exemptions for California-Made Products Amid Federal Tariff Impacts
Photo Credit: Bill Pugliano/Getty Images
SACRAMENTO, April 4, 2025 (CALIFORNIA NEWS TODAY) — The Office of the Governor of California, has announced a new strategic initiative aimed at reinforcing global trade relationships while advocating for exemptions of California-made products from retaliatory tariffs in response to federal trade policy changes.
According to a recent press announcement, Governor Gavin Newsom has directed state agencies to pursue international partnerships that safeguard California's economic interests and support its global trade role. The state will also seek exemptions for California-manufactured goods from any retaliatory measures linked to tariffs implemented by the Trump Administration.
"California leads the nation as the #1 state for agriculture and manufacturing — and it’s our workers, families, and farmers who stand to lose the most from this Trump tax hike and trade war. To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come, no matter the turbulence coming out of Washington. California is not Washington, D.C.," said Governor Gavin Newsom.
The Governor's directive includes identifying trade opportunities that promote job creation, safeguard supply chains, and bolster economic resilience. Key areas of concern include construction materials critical to rebuilding after the recent Los Angeles wildfires, such as timber, steel, aluminum, and drywall components.
According to the Governor's Office, retaliatory tariffs could disproportionately affect California’s more than 60,000 small business exporters and impact top trade destinations including Mexico, Canada, and China, which together account for over one-third of the state's $183 billion in exports.
Citing data from the Yale Budget Lab, the Governor’s Office reported the announced tariffs could result in a 2.3% increase in overall inflation this year, including a 2.8% increase in food prices and an 8.4% increase in automotive prices, amounting to an estimated $3,800 annual impact per household.
California has previously signed 38 international agreements with 28 foreign partners under the Newsom Administration, reinforcing its long-standing role in international economic cooperation.
For more information, visit www.gov.ca.gov.
