Governor Supports Court Ruling Against Unlawful Tariffs as Pro-Business & Safety Tariff Reform Bills Advance in Senate

Gov. Newsom’s Statement on Court Decision Affirming Trump’s Tariffs Unlawful

SACRAMENTO — Governor Gavin Newsom issued the following statement after a federal court ruled today that President Trump exceeded his use of emergency powers to enact broad-sweeping tariffs that hurt states, consumers, and businesses:

“Like we said when we filed our lawsuit, theseT tariffs are illegal, full stop,” said Gov. Newsom “The court agreed today that Donald Trump overstepped his authority with his unlawful tariffs, which have created chaos and hurt American families and businesses.”

On April 16, Gov. Newsom and Attorney General Rob Bonta filed a lawsuit arguing that President Trump lacks the authority to unilaterally impose tariffs through the International Economic Emergency Powers Act, creating immediate and irreparable harm to California, the world’s fourth largest economy, and nation’s leading manufacturing and agriculture state. Today’s decision was issued as part of a separate lawsuit filed by private parties and other states, but aligns with California’s arguments.

Majority Leader Gonzalez’s PRICE Act Passes Senate with Broad Coalition Support

SACRAMENTO – Majority Leader Lena Gonzalez’s (D-Long Beach) Senate Bill (SB) 263 – Protecting Residents, Industries, and California’s Economy or the PRICE Act – passed the Senate on a 33-1 vote May 28 as rapidly changing tariff policies impact California workers, families, and businesses.

In recent months, new tariffs have been implemented, paused, delayed, retracted, and reinstated, creating economic uncertainty for consumers and businesses, threatening the supply chain, and increasing prices. Recent estimates show that new tariffs could lead to price increases such as: $5,000-$10,000 more for a new car, a $300 increase in annual premiums for car insurance, an additional $9,200 more to build an new home, and other price increases amounting to nearly $5,000 per household.

California must assess the impacts of these tariffs on affordability, employment, key industries, and other economic factors to ensure policymakers have the comprehensive data needed to inform policy decisions. SB 263 would direct specified state agencies to study those impacts.

“SB 263 is a commonsense, forward-thinking response to tariff chaos from the federal government,” said Majority Leader Gonzalez. “Californians are feeling the squeeze from nonstrategic, rapidly changing tariffs. From our Ports to our kitchen tables, the uncertainty, rising prices, and supply chain issues are harming our state’s economy and worsening the financial burden on families already struggling with a rising cost-of-living.”

SB 263 now heads to the Assembly, with support from a broad coalition of stakeholders.

Majority Leader Gonzalez Bills to Ensure Oversight of Driver Assistance Technology Passes Senate

SACRAMENTO – Majority Leader Lena Gonzalez’s (D-Long Beach) Senate Bill (SB) 572, which would ensure that California maintains access to critical vehicle safety data, passed the Senate May 28 on a 28-5 vote.  

Currently, the National Highway Traffic Safety Administration or NHTSA requires manufacturers to report collisions involving vehicles with Level 2 advanced driver assistance systems or ADAS – which have features including lane centering and adaptive cruise control. NHTSA uses this data to investigate and pursue enforcement against manufacturers when there are safety issues with the driver assistance technology, to ensure unsafe vehicles are taken off public roads or that defects with the technology are addressed. 

Layoffs at NHTSA due to Elon Musk’s Department of Government Efficiency and opposition to crash reporting requirements from Tesla executives and the Trump transition team put this important public safety policy at risk. Recent changes to NHTSA’s collision reporting policy maintained reporting requirements for vehicles with Level 2 advanced driver assistance features, but heightened uncertainty about the future of this essential safety data collection.

“Without collision reporting requirements at the federal level, we lose a powerful tool to ensure the safety of rapidly advancing driver assistance technology,” said Majority Leader Gonzalez. “SB 572 ensures that California consumers and regulators won’t lose access to public safety data if the federal government fails to hold manufacturers accountable for the safety of their vehicles.”

There is currently no state oversight for Level 2 ADAS vehicles, which have been involved in 747 collisions in California according to NHTSA data – over 500 more than any other state. If the federal government ceases requiring crash reporting for these vehicles, SB 572 will require manufacturers to instead report collisions to the Department of Motor Vehicles or DMV, and require the DMV to make crash statistics public and transmit the data to NHTSA and the National Transportation Safety Board.

“We applaud Senator Gonzalez for her leadership in promoting transparency regarding potential safety defects in vehicles with Level 2 advanced driver assistance systems. If the federal government’s top auto safety agency abandons its role in requiring timely reporting about crashes involving semi-autonomous vehicles, it will be vitally important for California to fill that safety gap,” said Rosemary Shahan, President of Consumers for Auto Reliability and Safety.