California Governor Gavin Newsom has affirmed his state’s commitment to maintaining trade relations with China, despite the significant tariffs imposed by the Trump administration. During an interview with Nikkei Asia, Newsom emphasised California’s position as a “stable partner” extending an “open hand” to China and other global trading partners.
In remarks widely reported in Chinese media, Newsom argued that international trade is a mutually beneficial endeavour and that economies are inherently interdependent. He highlighted the numerous cooperation agreements between California and China at various levels of government, and referenced his 2023 visit to China, which aimed to further strengthen these ties at a national level.
The governor has been a vocal critic of the Trump administration’s trade policies, asserting that California has been disproportionately affected compared to other US states. He noted that California’s extensive trade links with Asia, combined with Silicon Valley’s deeply interconnected supply chains and markets in the region, make the state particularly vulnerable to trade disruptions.
[See more: Chinese e-commerce platforms surge in the US market amid trade tensions]
Newsom stated that Trump’s trade policy has inflicted substantial damage not only to trade but also to tourism, impacting both small businesses and large corporations, and severely damaging US credibility in global markets. He estimated that the direct and indirect economic losses to California from these policies amount to billions of dollars.
Following Trump’s announcement of “reciprocal tariffs” on all US trading partners, Newsom urged other nations not to retaliate against California goods with their own tariffs. The state has also taken legal action, filing a lawsuit against the federal government on 16 April, challenging the use of emergency powers to impose the tariffs and arguing they threaten California’s economy.
A policy analysis by Trade Partnership Worldwide projected that California could face over US$170 billion in import taxes in 2025 under the new tariff structure. Despite these challenges, Newsom highlighted California’s economic strength, saying that its 2024 nominal GDP surpassed that of Japan, ranking it as the fourth-largest economy in the world if it were a standalone nation.
