Can California dodge tariffs?

Investment Analysis Clubs Macro Economic Trends and Risks
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My understanding is that President Trump’s tariffs affect the entire country. It’s not possible for a state to dodge tariffs, is it?

News

Apr 4, 2025

Governor Newsom directs state to pursue strategic relationships with international trading partners; urges exemptions of California-made products from tariffs

What you need to know: As President Trump’s tariffs take effect, Governor Gavin Newsom is pursuing new strategic partnerships with international trading partners while calling for California-made products to be excluded from any retaliatory measures and affirming California’s long-standing commitment to fair, open, and mutually beneficial global trade…

News

Apr 4, 2025

Governor Newsom directs state to pursue strategic relationships with international trading partners; urges exemptions of California-made products from tariffs

“California is not Washington, D.C.”

**What you need to know:**As President Trump’s tariffs take effect, Governor Gavin Newsom is pursuing new strategic partnerships with international trading partners while calling for California-made products to be excluded from any retaliatory measures and affirming California’s long-standing commitment to fair, open, and mutually beneficial global trade.

SACRAMENTO – As global responses to the Trump Administration’s tariffs take shape, Governor Gavin Newsom today directed his Administration to pursue new strategic trade relationships with international partners aimed at strengthening shared economic resilience and protecting California’s manufacturers, workers, farmers, businesses, and supply chains. As part of this effort, the Governor is also calling on long-standing trade partners to exempt California-made products from any retaliatory measures, reinforcing the state’s commitment to fair, open, and mutually beneficial trade.

“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.”

Governor Gavin Newsom

Protecting California’s economic dominance

California is the fifth-largest economy in the world, the strongest economy in the nation, and the largest importer among all U.S. states, with more than $675 billion in two-way trade supporting millions of jobs throughout the state. California’s gross domestic product of $3.9 trillion is 50% bigger than the GDP of the nation’s next largest state, Texas, and is the key to the United States’ economic growth. California sends more than $83 billion to the federal government annually… [end quote]

Far from reducing tariffs on California products, Trump is likely to revel on the direct harm done to this blue state even if the economy as a whole is harmed.

Is there any way for California to dodge the tariffs?

Wendy

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I suspect it was like when Texas and Florida were interceding on Immigration policies. Although they didn’t have the right they did it anyways. I suspect that California and maybe other states will do the same thing and unless it is taken to the Supreme Court they will do what they want, even if it is illegal. The chains are off and nobody has to follow the laws anymore.

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Years ago, I proposed that the US west coast, and the northeast, break off from the US, and join Canada. Then the rump US would be free to wallow in superstition and bigotry. Everyone would be a lot happier.

I stand by that assessment.

Steve

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Previous administrations have gone after California in sneakier ways, that’s why we’ve lost various military bases, shipbuilding/repair bases, I’m not sure we even have a local air strike force any more, but they have to come in from out of region bases… Locally we used to have Army, Navy, Air Force bases, we do have Coasties here, but they are just training, a cooks and stewards school… DC games…

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I’m not a lawyer, but I have read the Constitution, and it clearly and specifically grants Congress the power to regulate trade among foreign nations and levy tariffs. As we learned from our last civil war, federal power trumps states rights. So I would say no, California can’t legally negotiate its own trade deal.

That said, the executive branch clearly has disregarded the Constitution and has no intention of abiding by it. It does make not sense to for only some parts to government bound by the Constitution, while others are exempt. At this point it is in the individual states best interests to do what they need to do, regardless of what the executive branch or Congress wants or what the Constitution says.

The tariffs are designed to inflict huge damage on the American economy. If states don’t wish to suffer that damage, they should opt out and dare the executive to enforce the rules.

There is some risk to this. Lincoln and Wilson made extraordinary power grabs during times of national emergency (some say far beyond any legal authority). So there is precedent for the president to take control of the military to enforce his desires. Jan 6 and the subsequent pardons also showed this the president is willing to use violence to achieve his ends. An astonishing number of sitting legislators are unwilling to say that the riot in the capital is a bad thing, which means they approve of and endorse political violence as a tool to enhance their power.

I’m not predicting this ends violently, but zero surprise if it does. I grew up shooting, although I haven’t in a long time. I used to shoot competitively, in fact. So, I’m going to the range to get practiced up. Our government is run by thugs and criminals. If they come for me, I have no interest in going quietly and have zero fear of these Walter Mitty MAGOO types.

Your local gun range is happy to instruct beginners, and there are even LGBTQ friendly ranges, believe it or not. Shooting is a discipline that requires intense focus and concentration. It is good for your mind. If anyone has interest, I recommend it. And who knows? Maybe push will come to shove.

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Really? Hmmmm… what would be the most practical weapon for a little old lady like me to defend her home? What about 6’2" DH?

Wendy

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For home defense? Shotgun, no question. Aim for the center of mass and keep firing until all your ammunition is expended.

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You still have the Naval base in San Diego where the seals work out of and is boot camp for the navy.

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Pump action shotgun, the shorter, the better, so it’s easier to maneuver in a confined space. Easy, fast, cycle time, and precise aim not required.

And, as some have noted over the years, chambering a round in a pump action gun produces a distinctive “chink-chunk” sound that communicates exactly what you have.

Steve.

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If he is talking CA made goods, as the headline says, then the tariff in question is the one charged by the receiving country, so yes they could exempt any class they want to … state, manufacturer, whatever.

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And the North Island Naval Air Station and the Miramar Marine Corps Air Station and the sub base on Point Loma. There’s the Naval Air Weapons Station in China Lake. There are several Air Force Bases – Vandenberg, Edwards, Travis. The Marines have several facilities out in the desert such as Twentynine Palms.

DB2

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@Tamhas I don’t understand. What “they” are you referring to? Are you saying that Governor Newsom can exempt a country from a tariff if the federal government says that country must pay it as long as the item is shipped to CA?
Wendy

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I think you are looking at the wrong side of the equation. California cannot avoid the tariffs imposed by the US Federal Government.

Instead, Newsom is asking foreign countries to exempt goods exported from California from those foreign countries’ tariffs - those enacted in response to Trump’s tariffs.

–Peter

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Peter has it. I was speaking of Newsom getting the foreign country to adjust its tariffs on US goods to give specified CA goods special treatment.

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Two 85 pound German Shepherds.

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Secede?

and a few characters

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I think South Carolina tried that once. Turned out bad for everyone.

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And from yesterday’s headlines…

China Limits Hollywood Films as Trade War Hits Services
https://www.bloomberg.com/news/articles/2025-04-10/china-to-reduce-import-of-hollywood-films-as-trump-hikes-tariffs

DB2