Have we talked about California cutting its own trade deals with foreign entities? Quick AI summary:
California Governor Gavin Newsom has announced plans to counter President Donald Trump's sweeping tariffs by pursuing independent trade strategies to protect the state's economy. Here are the key developments:
Independent Trade Agreements: Newsom aims to negotiate exemptions for California-made products from retaliatory tariffs imposed by nations affected by Trump's tariff hikes. He emphasized California's role as a reliable trading partner and its economic significance as the world's fifth-largest economy, contributing 14% of U.S. GDP.
Impact of Tariffs: Trump's tariffs include a baseline 10% duty on all imports, with higher rates for specific trade partners, such as 34% on Chinese goods and 20% on European imports. These measures risk disrupting California's agricultural exports (e.g., almonds, dairy, pistachios) and critical supply chains, particularly in construction materials needed for wildfire recovery efforts in Los Angeles.
California's Trade Strategy: Newsom's administration plans to strengthen ties with international partners through strategic relationships and promote stability for businesses and workers impacted by federal trade policies. California has already signed 38 international agreements with 28 foreign partners.
Legal Challenges: Experts highlight that California faces constitutional constraints under the Commerce Clause, which reserves foreign trade negotiations for the federal government. This raises questions about the feasibility of Newsom's approach.
^^It certainly has the potential to be really unconstitutional. This is the kind of crap Republicans pull. I like it.
