California Sues Trump Over Tariffs as Local Businesses Feel the Pinch

California Governor Gavin Newsom and Attorney General Rob Bonta announced Wednesday that the state is suing President Donald Trump over his administration’s tariff policies, a legal challenge that could have significant implications for businesses in Inglewood, Compton, and surrounding communities.

California, with the world’s fifth-largest economy, has become the first state to take legal action against the president’s tariffs, which have caused price increases across various industries. For small businesses in Inglewood and Compton, these tariffs have created additional financial pressures at a time when many are still recovering from pandemic-related economic challenges.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” Newsom said in a statement announcing the lawsuit.

Local business owners have reported feeling the impact of tariffs on imported goods ranging from electronics to food products. Myriam Gutierrez, who owns a small electronics repair shop in Inglewood’s Market Street district, has been forced to increase her prices due to higher costs for imported components.

“The parts I need for repairs are costing me 20-30% more than they did six months ago,” Gutierrez told the Inglewood Times. “It’s putting pressure on my customers, who are mostly working families trying to extend the life of their devices instead of buying new ones.”

The lawsuit challenges Trump’s use of the International Economic Emergency Powers Act (IEEPA) to impose tariffs without congressional approval. California officials argue that the president lacks the authority to levy tariffs under this law, which is intended for genuine national emergencies.

For Compton’s manufacturing sector, which includes numerous businesses supplying components to larger industries, the tariffs have disrupted supply chains and created uncertainty. The Compton Chamber of Commerce recently reported that 65% of its manufacturing members have experienced negative impacts from the tariffs, including higher input costs and reduced export opportunities.

“Many of our businesses in Compton depend on international trade, whether they’re importing materials or exporting finished products,” said James Washington, economic development coordinator for the City of Compton. “The uncertainty around tariffs makes it nearly impossible for these businesses to plan for the future.”

The lawsuit represents Newsom’s most direct legal challenge to Trump’s agenda since the president returned to office in January. The governor has also launched efforts to protect California’s economy from tariff impacts, including a tourism campaign aimed at Canadian visitors and attempts to persuade countries considering retaliatory measures to spare California-made products.

Local economic experts suggest that residents of Inglewood and Compton could see relief from higher prices if the lawsuit succeeds, but caution that the legal process may take months or years to resolve. In the meantime, community organizations are working to provide resources and support to affected businesses.

The South Los Angeles Business Development Center has scheduled workshops in both Inglewood and Compton next month to help small business owners navigate the current economic challenges and identify potential alternative suppliers or markets.

This story draws on reporting from Politico and local sources.