California Gov. Gavin Newsom slammed President-elect Trump’s proposal to impose 25% tariffs on goods from Mexico and Canada, calling it “one of the biggest tax increases in U.S. history” that would harm Californians and small businesses, particularly farmers.
“The 90% of these tariffs will impact the bottom of our economic chain, meaning lower-wage workers that pay over half of these taxes,” Newsom said. “Don’t think for a second this won’t impact you.”
Newsom also claimed that the tariffs would disproportionately affect farmers and ranchers, and that the state’s budget would be hit hard as a result. He estimated that the state would lose $25 million per year in tax revenue due to the tariffs.
In an effort to combat the potential impact of the tariffs, Newsom announced a plan to allocate $25 million from the state legislature to help “Trump-proof” California, a move he believes will help protect the state from federal policies that may be detrimental to its economy and people.
The governor also touched on the issue of border security, stating that the state cares about border security, but also about economic security and two-way trade with Mexico. He announced a new plan with the California National Guard to strengthen border security by targeting the flow of fentanyl and illegal weapons.
Newsom’s remarks come as he continues to position himself for a potential showdown with the incoming Trump administration. He also called the tariffs a “betrayal” and demanded that the federal government prioritize the interests of American workers, not just corporate interests.