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EXCLUSIVE: California Governor Gavin Newsom is set to unveil new strategies on Friday aimed at fostering “strategic” partnerships with countries that are implementing retaliatory tariffs against the United States. These plans will encourage these nations to exempt California-made products from the additional taxes, as confirmed by sources within Newsom’s administration.
This initiative responds directly to President Donald Trump’s recently announced “Liberation Day” tariff strategy, which proposes a foundational import duty of 10% on all goods entering the U.S., with even higher rates applicable to specific trading partners.
Concerns are mounting within the Newsom administration regarding the potential economic repercussions for California’s almond industry, a significant sector of the state’s agricultural exports. With countries such as China, India, and members of the European Union moving forward with plans for retaliatory tariffs, the outlook could be dire, threatening billions in revenue for almond producers.
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Governor Newsom, who is reportedly considering a 2028 presidential run, acknowledges the vital role of almonds in California’s economy. As the state’s most lucrative food export, almonds contribute approximately 20% of California’s agricultural sales overseas, generating around $23.6 billion. The state is responsible for 80% of the global almond supply and exports most of its production. Besides almonds, California’s top agricultural exports include dairy, pistachios, wine, and walnuts.
Renowned for being the fifth-largest global economy, California plays a crucial role in the overall economic landscape of the U.S., boasting a staggering gross domestic product of $3.9 trillion, which is 50% larger than Texas, the next largest state. The Golden State serves as the largest importer and the second-largest exporter among U.S. states, with over $675 billion in two-way trade facilitating millions of jobs, according to state officials.
Trade relationships with Mexico, Canada, and China are particularly significant, with these countries accounting for nearly half of California’s imports, valued at $203 billion out of over $491 billion in total imports last year.
According to a Newsom official, the new tariffs proposed by Trump could also hinder access to essential materials, particularly those needed for reconstruction efforts following wildfires in Los Angeles. Currently, the U.S. imposes a duty exceeding 14% on Canadian lumber, a figure that could nearly double to 27% in the coming year.
TRUMP PROMISES A RETURN TO THE ‘AMERICAN DREAM’ IN HISTORIC TARIFF DECLARATION
During a press conference in the Rose Garden at the White House on April 2, 2025, President Trump discussed the implications of the tariffs while presenting a “Foreign Trade Barriers” document. He asserted that this moment marks a pivotal point in American history, characterizing it as a declaration of economic independence.
“The markets are going to thrive. Stocks will soar, the nation will flourish, and the global community will be eager to negotiate,” Trump claimed. He emphasized that this plan aims to empower American citizens who have felt sidelined as other nations have prospered at their expense, expressing optimism about utilizing newfound wealth to reduce taxes and address the national debt rapidly.
Newsom’s team is voicing concerns about the possible chaos these tariffs could introduce to the supply chains, particularly in regions like California-Baja. They argue that additional taxes on goods crossing the border may inflate the prices of final products, ultimately impacting Californians.
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