Quick Read
- California Governor Gavin Newsom warns of a ‘code red’ economic emergency.
- High tariffs have caused significant declines in cargo volumes at major ports.
- Ports of Long Beach and Los Angeles report a 35% drop in cargo bookings.
- Newsom criticizes the Trump administration’s tariff policies as chaotic and unpredictable.
- California has filed a lawsuit against the federal government over tariff issues.
California Governor Warns of Economic Crisis Due to High Tariffs
California Governor Gavin Newsom has issued a stark warning about the economic consequences of high tariffs, describing the situation as a ‘code red’ emergency. In a recent statement, Newsom emphasized the severe impact these tariffs are having on California’s economy, particularly its major ports.
Impact on California’s Ports
Newsom highlighted the significant declines in cargo volumes at key ports across the state. The Port of Oakland in northern California has seen a 20% drop in cargo volumes, while the ports of Long Beach and Los Angeles in southern California have reported a 35% decline. Cargo bookings have plummeted by 60%, according to the governor. These disruptions are causing delays in the delivery of essential goods, from school backpacks to Christmas toys.
Criticism of Tariff Policies
Newsom criticized the Trump administration’s tariff policies, calling them chaotic and unpredictable. ‘If you want to impose tariffs to bring manufacturing and industrial policy back to the United States, they have to be predictable. You need stability,’ he said. ‘But every few hours, every news cycle, there’s another zig and zag. It’s chaotic. There’s no rhyme or reason.’
Long-Term Consequences
The governor warned that the impacts of these tariffs will be felt for months, even if the policies are reversed immediately. ‘Decisions being made today — or indecision around making commitments — will have a profound impact on tomorrow,’ he said. Newsom stressed that it takes weeks for decisions made overseas to affect product availability on shelves, meaning the current disruptions will have lasting effects.
California has taken legal action against the federal government over the tariff issues. The state was the first to file a lawsuit, underscoring the severity of the situation. Newsom has been vocal about the need for stable and predictable trade policies to protect California’s economy, which is the fourth-largest in the world.
Source: Xinhua, QNA