California Governor Blasts Trump's Tariffs as Devastating for Small Businesses

In the wake of recent federal court decisions blocking significant tariff policies from the Trump administration, California Governor Gavin Newsom welcomed the legal victories but expressed grave concern about the continuing impact on small businesses. Newsom emphasized that while the court actions offered some hope, many entrepreneurs have already suffered irreparable harm, with the prospect of further challenges looming if the tariffs persist.

“This has already had an impact, and the impact would be even more acute as it relates to shortages and supply constraints that are inevitable if this continues,” Newsom stated during a podcast interview. He described the current economic climate as “chaotic” and “self-inflicted by the Trump administration”, asserting that the consequences are spreading across the state’s diverse economy.

Governor Newsom recounted his conversations with more than a dozen small business owners who, he said, reported “complete devastation” due to the tariffs. Among the stories was that of a woman running a baby products company who now fears losing her home. “That’s because of Trump’s unilateral policies, illegal,” he declared, highlighting the very personal toll being exacted on California families.

Another case cited by Newsom involved a small family-run electric bicycle business. The owner, desperate for assistance, reached out directly to the governor after discovering his email address. The business, sitting on a container full of unsold inventory, was unable to pay the increased import taxes and faced imminent closure. Newsom indicated that while the court’s recent ruling may offer a momentary reprieve, the uncertainty continues to weigh heavily on such enterprises.

The legal developments referred to by the governor include a decision on Thursday from U.S. District Judge Rudolph Contreras, who found that former President Donald Trump did not have the authority to unilaterally impose certain tariffs. That judgment followed a similar ruling by the U.S. Court of International Trade, which blocked another set of tariffs, rejecting the use of presidential emergency powers to enforce them.

However, the situation remains in flux. The U.S. Court of Appeals for the Federal Circuit issued a stay on the trade court’s decision, temporarily reinstating what are known as “reciprocal” tariffs while the legal battle continues. Despite this, Judge Contreras’ ruling was not affected by the appellate stay, though he paused its enforcement for 14 days to allow time for an administrative appeal.

Newsom applauded the courts’ actions, calling them particularly “rewarding” for small businesses hardest hit by the trade restrictions. He noted that California was a leader in challenging the tariff policy, saying, “California was the first to sue Trump over these unlawful tariffs, and now the courts are saying exactly what we argued from day one.”

He further underscored the real-world costs of the trade measures, describing canceled shipments, layoffs, business closures, and families on the brink of homelessness. For Newsom, the evidence is clear: “It’s small businesses, in particular, that are being devastated by this uncertainty.” As litigation continues and the future of the tariffs remains undecided, the governor and affected business owners are looking to the courts for relief—and hoping that the reprieve will not be temporary.