California Governor Blames Trump's Tariffs for Devastating Impact on Small Businesses

California Governor Gavin Newsom issued a stark warning following two federal court rulings that partially blocked key tariff policies introduced during the Trump administration. While Newsom welcomed the legal setbacks to the tariffs, he stressed that the consequences for small businesses have already been profound and are likely to intensify if the trade restrictions remain.

“These decisions are important, but the harm has been done,” Newsom stated during an interview, emphasizing that supply shortages and operational hardships would only grow under continued uncertainty. “We’re in this chaotic moment. It’s self-inflicted by the Trump administration. That chaos continues. The damage has been done.”

According to Newsom, the impact on local entrepreneurs—particularly small business owners—has been nothing short of catastrophic. He disclosed that after meeting with over a dozen small business proprietors, the stories of hardship were overwhelming. One business owner, who sells baby products, told Newsom that she was at risk of losing her home directly because of the levies imposed under the previous administration’s unilateral trade measures.

“These policies are illegal. They have completely devastated people’s livelihoods,” Newsom said. He also recounted a personal interaction with the owner of a family-run electric bike business, from whom he purchased a bike for his son. The owner, unable to bear the steep costs associated with the tariffs despite a full container of inventory, reached out to Newsom in a desperate plea for assistance, fearing the business would not survive.

Newsom said he was planning to update the business owner about the recent court developments, hoping the ruling might offer "a reprieve," albeit a temporary one. The courts’ decisions—first from U.S. District Judge Rudolph Contreras and later from the U.S. Court of International Trade—found that former President Donald Trump lacked the authority to unilaterally impose the tariffs. However, the relief remains uncertain, with the Federal Circuit Court issuing a stay that temporarily reinstates the controversial trade penalties while legal battles continue.

Though Judge Contreras’s ruling remains in effect for now, it is on hold for two weeks to allow for a possible appeal by the administration. Newsom praised the courts for taking a stand against the tariffs, describing the outcomes as especially “rewarding” for small businesses battered by prolonged economic headwinds.

“California was the first to sue Trump over these unlawful tariffs, and now the courts are saying exactly what we argued from day one,” the governor declared. “Families in California and across the country have felt the real cost of Trump’s ego-driven trade war: canceled shipments, layoffs, business closures, even parents losing their homes.”

He concluded by reinforcing the severe and continuing toll: “This is real. It’s consequential. And it’s small businesses, in particular, that are being devastated by this uncertainty.” Newsom called for swift action to restore stability and prevent further hardship for entrepreneurs and working families throughout the state.