California Gov. Gavin Newsom said he’s seeking agreements with other nations to try to exempt his state from the retaliatory tariffs in response to President Donald Trump’s “Liberation Day” actions.
“I’ve directed my administration to look at new opportunities to expand trade and to remind our trading partners around the globe that California remains a stable partner,” Newsom said in a video message posted to X, reported Axios. “Donald Trump’s tariffs do not represent all Americans.”
Newsom, who is widely expected to seek the presidency in 2028, added that California is the “tentpole of the U.S. economy and wants to maintain stable trading relationships around the globe.”
“California is here and ready to talk,” he wrote on X. “We will not sit idly by during Trump’s tariff war. We make up 14% of the US GDP. We’re the 5th largest economy in the world. We’re not scared to use our market power to fight back against the largest tax hike of our lifetime.”
The White House on Friday slammed Newsom’s call to other countries, with spokesperson Kush Desai telling Axios that he should “focus on out-of-control homelessness, crime, regulations, and unaffordability in California instead of trying his hand at international dealmaking.”
Retaliatory measures from China and other nations are widely expected to harm California’s agricultural sector, particularly its massive almond industry, reported The San Francisco Chronicle.
In 2022, the state’s almond crop was worth $4.7 billion, according to statistics from the University of California’s Department of Agricultural and Resource Economics.
Almond Board of California spokesman Rick Kushman said the state’s roughly 7,600 almond farms create 110,000 jobs and contribute $9.2 billion to the state’s GDP.
California’s Central Valley produces most of the almond crop, with the state producing more than 76% of the almonds in the world. Three-quarters of the state’s crop goes out as exports, according to the Almond Board.
India is the largest of the almond importers, with other top exports going to China and to European Union markets in Spain, Turkey, and Italy. China unrolled retaliatory tariffs against the United States on Friday.
Kushman cited a 2022 UC Davis study that found that retaliatory tariffs against the United States could result in almost $875 million in lost exports.
“California almonds are shipped to more than 100 destinations, and maintaining a diverse export program is essential,” said Kushman. “We continue to support reducing barriers to trade and smooth market access for California almonds.”
California’s wine industry is also feeling the effects of tariff threats that started in February, when Trump first threatened a 25% tariff on Canadian goods. Several Canadian provinces ordered American-made alcohol.
According to the Wine Institute, Canada is the world’s largest export market for California wine, resulting in more than $1 billion in annual sales.
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