As Trump raises economic walls, California extends a global handshake.
Newsom’s bold response signals a new era of subnational diplomacy as the state pushes back against federal trade policies.
Democratic Governor of California, Gavin Newsom, announced Friday that the state is ready to open direct dialogue with “trade partners around the world” in response to the escalating tariff war declared by Republican President Donald Trump. The move reflects growing tension between federal and state economic agendas—and showcases California’s ambition to carve its own path on the global stage.
“To our global trade partners: California is here and ready to talk,” Newsom posted on the social media platform X.
He emphasized the state’s economic clout, noting that California contributes 14% of the U.S. GDP and ranks as the fifth-largest economy in the world—a position that gives the state considerable leverage in international conversations.
“We are not afraid to use our market power to push back against the largest tax hike of our lifetimes,” Newsom declared, referring to Trump’s sweeping tariffs, which have triggered retaliatory measures from key U.S. trading partners and disrupted supply chains across industries.
Newsom made clear his opposition to the federal administration’s approach:
“Trump’s tariffs don’t represent all Americans,” he said, describing California as the nation’s “dominant manufacturing powerhouse.”
Newsom’s announcement is more than rhetoric. It reflects a broader strategy to assert California’s autonomy in global matters that directly affect its economic interests. The governor has instructed his administration to actively seek new opportunities to expand trade relationships and to assure international partners that “California remains a reliable ally.”
This statement resonates with businesses, particularly in agriculture, tech, and manufacturing sectors that have been hit hard by tariffs and counter-tariffs.
While U.S. states cannot sign binding international trade agreements—that power lies exclusively with the federal government—there is precedent for states engaging in economic diplomacy and establishing memorandums of understanding (MOUs) with foreign governments or trade entities.
According to Julian Ku, professor of constitutional law at Hofstra University, while states cannot override federal trade policy, they can play a significant role in shaping global partnerships and influencing federal action through economic pressure.
“It’s not illegal for a state like California to talk to foreign governments about economic cooperation, so long as they don’t enter into formal treaties,” Ku explained. “MOUs, joint ventures, and informal agreements are totally within their rights—and can be very impactful.”
California has a history of flexing its economic muscles on the global stage:
- In 2017, following the U.S. withdrawal from the Paris Climate Accord, Governor Jerry Brown traveled to China to sign climate cooperation agreements.
- California maintains its own trade offices abroad, such as in Mexico and China, and regularly hosts foreign dignitaries for trade missions.
- The state has previously launched “climate diplomacy” efforts, forming alliances with other subnational governments to advance policy independently of Washington.
These efforts have helped California develop its own soft power—a kind of parallel foreign policy that reflects its progressive values and economic self-interest.
For California, Trump’s tariffs risk billions in exports—from almonds and wine to semiconductors and electric vehicles. Newsom’s initiative is not just political theater; it is a bid to stabilize supply chains, reassure international partners, and shield local industries from long-term damage.
According to Sarah Reynolds, senior fellow at the Brookings Institution, Newsom’s approach is both pragmatic and symbolic:
“He’s signaling to the world that California won’t be dragged into an economic conflict it didn’t start—and that the state is willing to lead where Washington fails.”
