EXCLUSIVE: California Gov. Gavin Newsom will announce plans Friday afternoon directing the state to pursue “strategic” relationships with countries announcing retaliatory tariffs against the U.S., urging them to exclude California-made products from those taxes, Fox News Digital has learned.
Sources in Newsom’s administration told Fox News Digital the announcement is a direct response to President Donald Trump’s “Liberation Day” tariff plan, which sets out a baseline duty of 10% on all imports to the U.S. and some higher percentages for other top traders.
The Newsom administration is worried that California’s almond industry, a major agricultural exporter, will lose billions of dollars as nations like China, India and the European Union move to impose retaliatory tariffs.
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Almonds, California’s most valuable food export, account for about 20% of the state’s $23.6 billion in agricultural sales abroad and 2.5% of its total exports, according to the California Department of Food & Agriculture. The state produces 80% of the world’s supply and exports the majority of its almond crop. Other top agricultural exports include dairy products, pistachios, wine and walnuts.
California boasts of being the fifth-largest economy in the world, a vital engine for much of U.S. economic growth, with a gross domestic product of $3.9 trillion — 50% larger than Texas, the nation’s second-largest state. The Golden State is the largest importer and second-largest exporter among U.S. states, with more than $675 billion in two-way trade supporting millions of jobs, state officials said.
Trade with Mexico, Canada and China are also key partners for California, as nearly half of the state’s imports come from these countries, totaling $203 billion of the more than $491 billion in goods imported by California last year.
A Newsom official said the new Trump tariffs will also affect access to critical supplies, like construction materials, needed to rebuild after the Los Angeles wildfires. The U.S. currently imposes a duty of over 14% on Canadian lumber, with the rate potentially rising to nearly 27% this year.
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State officials also said the retaliatory tariffs will cause “major disruptions” to cross-border supply chains in the California-Baja region, arguing that if component goods are taxed each time they cross the border, the final price of the finished product will increase and be passed onto Californians.
“The markets are going to boom. The stock is going to boom, the country is going to boom, and the rest of the world wants to see is there any way they can make a deal,” Trump said Thursday leaving the White House.
“This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence. For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” Trump said. “But now it’s our turn to prosper, and in so doing, use trillions and trillions of dollars to reduce our taxes and pay down our national debt, and it’ll all happen very quickly.”
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