Federal judge dismisses California lawsuit against Trump over 'liberation day' tariffs

A federal judge has dismissed California’s lawsuit against President Donald Trump over his tariffs, saying that the case does not belong in the San Francisco-based court, but rather in an out-of-state court that specializes in trade disputes.

The case was brought forth by California officials, including Governor Gavin Newsom and Attorney General Rob Bonta, in April over Trump’s "liberation day" tariffs. They claimed that Trump does not possess the authority to tax imports under the International Emergency Economic Powers Act.

Per Politico, US District Court for the Northern District of California Judge Jacqueline Scott Corley partially sided with the Trump administration, which argued that the case belongs in the US Court of International Trade, located in New York. But instead of transferring the case to the trade court, as Trump’s attorneys requested, she dismissed the case outright.

In dismissing the case, she granted California’s request to leave a path open to appeal the ruling to the US 9th Circuit Court of Appeals. Newsom and Bonta’s offices said after the ruling that the state has already appealed. 

Bonta said, "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."

Newsom spokesperson Tara Gallegos noted that the case had been dismissed on procedural grounds, and that a DC district court had reached a different conclusion in a similar case. "Multiple courts have ruled against President Trump’s use of emergency powers to enact these unlawful tariffs."

The DC District Court had ruled in favor of two toy-import companies, invalidating Trump’s tariffs. The trade court has also struck down Trump’s tariffs, however, his taxes on imports have largely remained in place as litigation plays out,