Newsom Fires Back at Trump's Trade Strategy, Labeling it Quixotic, Inconsistent, and Chaotic in Tariffs Policy
Fresh Take:
Title: Gavin Newsom Rips Trump's Trade Policy as 'Quixotic' and 'Destructive'
California's governor, Gavin Newsom, weighs in on President Donald Trump's trade agenda during an interview on 'Kudlow.'
No stranger to diplomatic controversies, Trump has been attempting to address global trade imbalances. However, instead of finding favor among Democrats, his approach is facing criticism, particularly from potential 2028 contender, Newsom.
Despite announcing a trade deal with Britain and promising more to come, Trump's tariff-heavy policies have caused market turmoil and left many Americans skeptical. Newsom elaborated on his thoughts regarding Trump's trade strategy, labeling it as inconsistent and chaotic.
"Even if I'm being generous, I'd say this inconsistency and chaos stifles investment, crushes consumer confidence, and suffocates small, medium, and large businesses," Newsom shared in the interview.
He believed that such irrationality doesn't foster predictability and stability, key elements needed to boost Trump's case for his trade agenda. Commerce Secretary Howard Lutnick, however, insists that more trade deals are on the horizon, following the US-UK agreement, citing that it will boost the economy.
Newsom also expressed his concerns regarding China, as the Trump administration prepares for negotiations in Geneva, Switzerland. The governor warned that the talks might not be successful and that Trump may even impose an 80% tariff on China, which would be significantly lower than the current 145%. But the final decision rests with U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer, who will meet with Chinese economic tsar He Lifeng this weekend.
Newsom's criticism intensifies as the trade war with China approaches a critical juncture. He fears Trump’s approach to trade and tariffs has turned the economic landscape into treacherous territory, making wise decisions nearly impossible.
"It's a serious moment. A better strategy is needed – one that Trump hasn't employed yet," he added. Reveling in the opportunity to create change, Newsom champions a gradual approach to eradicating the chronic trade imbalance, focusing on worker-centered industrial policy.
While details remain scant, Newsom's pointed critique of Trump's trade policy indicates that he’s bracing the Golden State for potential impact, hoping for wiser decisions from the Trump administration.
Article contributions by Danielle Wallace, Brie Stimson, and Bradford Betz.
Enrichment Data:
Details and Insights:
- Inconsistent and Chaotic Approach: Newsom believes the inconsistency and chaos around Trump's trade policies deter businesses, consumers, and investors, leading to a decrease in overall economic growth and stability.
- Economic Impact: As a result of Trump's trade policies, businesses, consumers, and the global supply chain will struggle to adapt quickly, causing long-term damage that cannot be easily undone.
- Threat to California's Economy: Newsom is particularly concerned that California's economy, which relies heavily on trade, will suffer the most due to tariffs and would require international intervention to alleviate the impact.
- Legal and Constitutional Concerns: Newsom questions the constitutionality of Trump's tariffs under certain laws like the International Emergency Economic Powers Act, suggesting that the White House lacks the authority to impose them unilaterally.
- Gavin Newsom, voicing his concerns, asserts that the inconsistent and chaotic trade policies pursued by President Trump stifle investment, sap consumer confidence, and hamper the growth of small, medium, and large businesses, potentially creating long-term economic damage.
- As the trade war with China escalates, Newsom accentuates the detrimental effects of Trump's policies on California's economy, which heavily depends on trade, and calls for a more intentionally crafted strategy to address the ongoing trade imbalance.
- In addition to economic concerns, Newsom raises legal and constitutional questions regarding the implementation of Trump's tariffs, contending that the White House may lack the authority to impose them unilaterally under certain laws such as the International Emergency Economic Powers Act.
