FOX Business host Larry Kudlow discusses President Donald Trump’s steel tariffs and more on ‘The Bottom Line.
A San Francisco-based federal judge dismissed California’s lawsuit challenging President Donald Trump’s tariffs Monday, citing a jurisdiction issue.
Judge Jacqueline Scott Corley – a nominee of former President Joe Biden – issued a partial setback to California Gov. Gavin Newsom and Attorney General Rob Bonta, who sued Trump and several federal agencies in April.
The Trump administration had asked the judge to transfer the case from the U.S. District Court for the Northern District of California to the U.S. Court of International Trade, based in New York. She instead threw out Newsom and Bonta’s case altogether, opening a path for the two Democrats to appeal the ruling to the famously liberal U.S. 9th Circuit Court of Appeals.
TARIFF FIGHT ESCALATES AS TRUMP APPEALS SECOND COURT LOSS
California Gov. Gavin Newsom announces a lawsuit against Trump’s tariffs during a news conference at Gemperle Orchard on April 16, 2025, in Ceres, California. (Justin Sullivan/Getty Images / Getty Images)
The California Democrats argued Trump’s tariffs issued under the International Economic Emergency Powers Act violate the separation of powers doctrine because they were not approved by Congress, but the Trump administration says the levies address a national emergency due to the trade deficit with other countries.
Scott Corley’s decision comes after two rulings last week rejected the legality of Trump’s tariffs plan, which included issuing 10% “Liberation Day” tariffs and additional levies against China, Mexico and California. Both a three-judge panel on the New York-based trade court and an Obama-appointed Washington, D.C., District Court judge said Trump’s tariffs exceeded the authority granted under the International Emergency Economic Powers Act.
Bonta issued a statement Monday celebrating how Scott Corley granted California’s request for dismissal to allow him and Newsom to seek an appellate review. The attorney general said the San Francisco-based federal judge’s decision “keeps the case in California and allows California to appeal to the Ninth Circuit, which it plans to do immediately.”
California Gov. Gavin Newsom and California Attorney General Rob Bonta during a news conference at Gemperle Orchard on April 16, 2025, in Ceres, California. (Justin Sullivan/Getty Images / Getty Images)
TRUMP TARIFF PLAN FACES UNCERTAIN FUTURE AS COURT BATTLES INTENSIFY
“Today, our lawsuit challenging the Trump Administration’s disastrous and illegal tariffs was allowed to remain in California pending our incoming appeal. 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. Our argument is straightforward: Trump doesn’t have the authority to impose these destructive tariffs — the International Emergency Economic Powers Act simply does not authorize tariffs,” Bonta said. “We remain confident in the strength of our case and look forward to continuing to fight for California’s vibrant economy, businesses, workers, and families.”
“It was dismissed on procedural grounds,” Newsom’s press office wrote on X. “We disagree — as did a federal court in D.C. — and have already appealed.”
President Donald Trump’s economic plan involves “reciprocal” tariffs to address trade deficits with other countries. (Andrew Harnik/Getty Images / Getty Images)
Newsom reacted to the trade court and the D.C. judge’s rulings against the tariffs in an appearance on the MeidasTouch podcast last week, stating, “It’s raining TACOS today. It’s not a good day for Donald Trump and his central economic program.”
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TACOS, an acronym coined by a Financial Times columnist to mean “Trump Always Chickens Out,” has gained some traction on Wall Street and among Democratic circles who are banking on Trump’s tariff threats not materializing.
