California GDP reached $4.1 trillion in 2024, outpacing Japan’s $4.02 trillion, per the IMF and BEA. Only the U.S., China, and Germany now rank higher globally.
Governor Newsom Celebrates — and Warns
“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said. But he added: “Our progress is threatened by the reckless tariff policies of the current federal administration.”
State’s Economic Strength
- California’s 2024 growth rate: 6% — stronger than the U.S. (5.3%), China (2.6%), and Germany (2.9%).
- Average nominal GDP growth from 2021–2024: 7.5%.
However, preliminary forecasts suggest India could surpass California by 2026.
Tariffs Could Hit California Hard: According to Trade Partnership Worldwide, California could face $170 billion in new import taxes this year if tariffs persist.
Governor Newsom previously filed a lawsuit against Trump’s use of emergency powers to impose tariffs without congressional approval, calling it an unconstitutional overreach.
About the Lawsuit: Filed April 16, California’s suit argues that the International Economic Emergency Powers Act (IEEPA) doesn’t allow tariffs — and that Trump has misused it for trade wars.
Twelve other states have now joined the legal challenge, including New York, Illinois, and Connecticut.
White House Response: Spokesman Kush Desai said:
“The administration remains committed to using its full legal authority to confront the distinct national emergencies our country is currently facing.”
He slammed Democratic leaders for launching a “witch hunt” instead of focusing on public safety.
What’s Next?
- “Reciprocal” tariffs against most countries have been paused for 90 days — except China.
- A baseline 10% global import tariff remains in effect.
- Trump said this week that Chinese tariffs would “come down substantially” eventually — but warned, “it won’t be zero.”
California’s economic momentum is undeniable — but Trump’s aggressive tariff agenda could reshape not just global trade, but the state’s future as America’s economic engine.
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