A federal judge in San Francisco has dismissed California’s lawsuit challenging President Donald Trump’s tariff policy, citing a jurisdictional issue.
The ruling, issued Monday by U.S. District Judge Jacqueline Scott Corley, a nominee of Joe Biden, halts Governor Gavin Newsom and Attorney General Rob Bonta’s legal challenge for now, but allows the state to pursue an appeal.
🚨 #BREAKING: A federal judge has just DROPPED Gavin Newsom’s lawsuit against President Trump over tariffs
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Another L for Newscum 😆 pic.twitter.com/vnyqXkTIDj
— Nick Sortor (@nicksortor) June 3, 2025
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The lawsuit, filed in April, sought to block tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA). Newsom and Bonta argued that the tariffs violated the constitutional separation of powers because they were not authorized by Congress.
BREAKING: Gavin Newsom is suing the Trump Admin over tariffs. He claims the tariffs are “unlawful” and are “wreaking chaos.”
Newsom just asked for a $2.8 billion bailout for Medicaid for illegals and California is facing a homeless crisis.
Meanwhile this is what he’s focusing… pic.twitter.com/81jkQLt752
— Libs of TikTok (@libsoftiktok) April 16, 2025
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The Trump administration countered that the tariffs were justified under the IEEPA due to ongoing trade deficits with key global partners and national economic security concerns.
Instead of transferring the case to the U.S. Court of International Trade in New York, as the Trump administration requested, Judge Corley dismissed the case outright.
The move enables California officials to take the case to the U.S. 9th Circuit Court of Appeals, one of the most liberal appellate courts in the country.
Bonta issued a statement shortly after the ruling, emphasizing that the dismissal was procedural and grants California the ability to seek appellate review.
“Today, our lawsuit challenging the Trump Administration’s disastrous and illegal tariffs was allowed to remain in California pending our incoming appeal,” Bonta stated.
“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.”
Bonta reiterated his belief that Trump lacked the authority to impose the tariffs.
“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,” he 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.”
The lawsuit was filed in response to a series of tariffs announced by the Trump administration, including a 10% “Liberation Day” tariff and additional duties aimed at China, Mexico, and certain goods from California.
The administration has defended the tariffs as part of a broader strategy to address structural imbalances in global trade and reduce U.S. reliance on foreign supply chains.
The dismissal in San Francisco follows two other court decisions last week that questioned the scope of Trump’s tariff authority.
A three-judge panel on the U.S. Court of International Trade in New York and a federal district judge in Washington, D.C.—both appointed under previous Democratic administrations—ruled that certain aspects of the tariff plan exceeded the authority granted under the IEEPA.
Following the San Francisco ruling, Governor Newsom’s office responded on social media, saying, “It was dismissed on procedural grounds. We disagree — as did a federal court in D.C. — and have already appealed.”
It was dismissed on procedural grounds. We disagree — as did a federal court in D.C. — and have already appealed. https://t.co/BNfnxVKIQK
— Governor Newsom Press Office (@GovPressOffice) June 3, 2025
Newsom also addressed the recent court activity during an appearance on the MeidasTouch podcast.
Referencing the acronym “TACOS,” which stands for “Trump Always Chickens Out,” Newsom said, “It’s raining TACOS today. It’s not a good day for Donald Trump and his central economic program.”
The term “TACOS” was coined by a Financial Times columnist and has circulated among Democratic figures and some on Wall Street who question whether Trump’s tariff plans will be fully implemented or sustained.
WATCH: Trump just hit a home run with his response to a reporter’s snarky question.
Reporter: “Wall Street analysts have a new term called the TACO trade.. Saying ‘Trump Always Chickens Out on tariffs’”
Trump: “You call that chickening out? Because we have $14 trillion now… pic.twitter.com/Ld5Y6RCdjf
— George (@BehizyTweets) May 28, 2025
While California moves forward with its appeal, the legal status of President Trump’s tariff policy remains in flux as other federal courts continue to weigh similar challenges.
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