Federal Judge Dismisses California Lawsuit Against Trump Administration

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A federal judge dismissed California’s lawsuit challenging President Trump’s tariffs.

According to POLITICO, the San Francisco-based judge said the case belongs in an out-of-state court specializing in trade disputes.

From POLITICO:

The ruling — separate from a pair of high-profile rulings in other courts last week — partially sides with the Trump administration, which argued the case belongs in the New York-based U.S. Court of International Trade rather than the U.S. District Court for the Northern District of California, where Gov. Gavin Newsom and state Attorney General Rob Bonta earlier filed their case.

But Judge Jacqueline Scott Corley dismissed the case outright rather than immediately transfer it to the trade court, as Trump’s attorneys had requested. By doing so, she granted the state’s request to leave a path open for California to appeal the ruling to the U.S. 9th Circuit Court of Appeals, a famously liberal-leaning bench.

Still, Scott Corley’s decision is a blow to California officials who had hoped the district court would rule on the legality of Trump’s unilateral tariffs. Last week, a D.C. District Court judge went the opposite direction and invalidated Trump’s tariffs, ruling in favor of two toy-import companies. The trade court also struck down Trump’s tariffs last week, although his taxes on imports have largely been left in place while federal litigation plays out.

“When President Trump erratically taxes everyday goods, he is skyrocketing costs for families and inflicting billions of dollars in damage to our state,” Newsom said in April.

“California’s lawsuit against these reckless tariffs is about standing up for all Americans — and preserving our reputation,” he added.

WATCH:

Per Fox Business:

Bonta issued a statement Monday celebrating how Scott Corley granted California’s request for dismissal to allow him and Newsom to seek an appellate review. The attorney general said the San Francisco-based federal judge’s decision “keeps the case in California and allows California to appeal to the Ninth Circuit, which it plans to do immediately.”

“Today, our lawsuit challenging the Trump Administration’s disastrous and illegal tariffs was allowed to remain in California pending our incoming appeal. We strongly believe this case belongs in federal district court and are pleased the court considered our wishes in dismissing this case so we have the opportunity to seek review. Our argument is straightforward: Trump doesn’t have the authority to impose these destructive tariffs — the International Emergency Economic Powers Act simply does not authorize tariffs,” Bonta said. “We remain confident in the strength of our case and look forward to continuing to fight for California’s vibrant economy, businesses, workers, and families.”

“It was dismissed on procedural grounds,” Newsom’s press office wrote on X. “We disagree — as did a federal court in D.C. — and have already appealed.”

Newsom reacted to the trade court and the D.C. judge’s rulings against the tariffs in an appearance on the MeidasTouch podcast last week, stating, “It’s raining TACOS today. It’s not a good day for Donald Trump and his central economic program.”

TACOS, an acronym coined by a Financial Times columnist to mean “Trump Always Chickens Out,” has gained some traction on Wall Street and among Democratic circles who are banking on Trump’s tariff threats not materializing.



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