With $11.3 Billion in Tariff Costs and Mounting Job Losses, Newsom Blasts Trump for Economic “Failure” That Hits Los Angeles Hard
In a scathing new report released by Governor Gavin Newsom’s office, California officials are raising red flags over the staggering economic toll the Trump administration’s trade policies are having on the state—especially in Los Angeles, one of the nation’s largest trade hubs.
According to the report, California companies paid $11.3 billion in tariff costs during the first half of 2025, more than any other state in the nation. The report slams former President Donald Trump’s trade strategy as a “failure,” warning that the ripple effects of these tariffs are landing squarely on working families and small businesses.
“Trump’s economic chaos is becoming unbearable for everyday Americans trying to make ends meet,” Governor Newsom said during a press conference on August 4. “He has betrayed every promise of economic growth and instead delivered a full-blown crisis.”
Los Angeles, home to the Port of Los Angeles and the Port of Long Beach—the two busiest ports in the United States—is among the regions hit hardest by the escalating trade war.
“The Los Angeles economy is built on trade, logistics, and small business,” said Sandra Romero, a UCLA economist. “When tariffs go up, everything from warehouse jobs to shipping contracts to small retailers suffer. And we’re seeing that now in real time.”
Thousands of companies across L.A. County depend on imported goods for manufacturing and retail. According to the California Chamber of Commerce, many small and medium-sized businesses in the region have faced months of uncertainty, rising supply costs, and declining profit margins.
The state report also criticized a recently released federal jobs report, calling it “deeply misleading” and highlighting that 250,000 fewer jobs were created in May and June than initially reported, bringing economic performance to its weakest point since the COVID-19 pandemic. The discrepancy, officials say, is a reflection of a deeper dysfunction in federal economic policy reporting.
“Instead of fixing the problem, Trump is reportedly calling for the firing of the official who disclosed these figures,” the statement said.
The economic pain, the governor warned, is far from over. State economists estimate that tariffs could cost California households up to $25 billion and result in the loss of over 64,000 jobs statewide—a significant portion of which are expected to come from Los Angeles and other urban centers with heavy trade and manufacturing presence.
The alarm was also sounded over the missed August 1 deadline to finalize tariff negotiations with major trade partners, including China and the European Union. Without a deal, California businesses—especially those operating in international markets—face continued instability and increasing import/export costs.
The state report notes that tariffs act as a hidden tax, often passed down to consumers through higher prices at the checkout counter. A Fox Business segment cited in the report confirmed: “Tariffs are an indirect tax on families and workers, not foreign governments.”
Governor Newsom didn’t stop at economic critique. He also accused Trump of targeting California politically, especially in Los Angeles, through aggressive federal actions like immigration raids and redistricting proposals.
During his press conference, Newsom condemned the Trump administration’s alleged efforts to reshape electoral maps in California to weaken Democratic influence—a move he said amounts to “a direct threat to democracy and our freedoms.”
These accusations follow mass ICE raids in Los Angeles County, during which immigrant rights groups raised concerns over missing detainees. In June, federal lawmakers confirmed that over 1,100 individuals were being held in the Adelanto Detention Facility, adding fuel to tensions between state and federal leadership.
Though not officially declared, speculation continues to swirl around Gavin Newsom’s potential run for the presidency in 2028—a move that would pit him directly against the influence of Trump’s political resurgence.
“California is the fourth-largest economy in the world. We won’t sit quietly while reckless policies threaten our people, our businesses, and our future,” Newsom said.
The bitter feud between Newsom and Trump reached an emotional peak during Trump’s previous visit to Los Angeles to survey wildfire damage in 2020, particularly in Hollywood, where multiple deaths were reported. Trump blamed the state for poor forest management, while Newsom defended his administration’s record.
The state is bracing for what officials warn could be a prolonged period of economic turbulence, especially if federal tariffs remain in place and political interference escalates.
In the meantime, advocacy groups in Los Angeles are urging more support for small businesses, renters, and undocumented workers—many of whom are being squeezed hardest by rising prices and job instability.
California, and Los Angeles in particular, finds itself once again on the front lines of a national battle over economic policy, immigration, and political power. As Newsom sharpens his stance against Trump, it’s clear the Golden State is not backing down—especially when its families, businesses, and future are on the line.
