SACRAMENTO, the United States, May 30 (Xinhua) -- Following rulings by two federal courts blocking key tariff measures enacted by the Trump administration, California Governor Gavin Newsom praised the decisions but warned that the damage to small businesses had already been severe and would only worsen if the tariffs remain in place.
"This has already had an impact, and the impact would be even more acute as it relates to shortages and supply constraints that are inevitable if this continues," Newsom said during a podcast interview with Ben Meiselas, co-founder of MeidasTouch Network.
"We're in this chaotic moment. It's self-inflicted by the Trump administration. That chaos continues. The damage has been done," he said.
Newsom said he had met with more than a dozen small business owners and found that the tariffs had caused "complete devastation" to their operations. He shared the story of one such entrepreneur, a woman who sells baby products, who said she might lose her home because of the levies.
"That's because of Trump's unilateral policies, illegal," he added.
Newsom also cited another case involving a family-run business from which he purchased an electric bike as a holiday gift for his son. The owner, having found Newsom's email address on the receipt, reached out directly.
In his message, the business owner explained that although he had a full container of inventory, he could no longer afford the tariffs and was at risk of shutting down. He asked the governor for help.
"I said, we have this lawsuit ... I'm looking forward to emailing him back and reminding him of this momentary impact of this federal court decision today that may give him a reprieve."
Newsom was referring to a ruling issued Thursday by U.S. District Judge Rudolph Contreras, who determined that President Donald Trump lacked the unilateral authority to impose tariffs on behalf of two Illinois toy importers.
The decision came less than 24 hours after the U.S. Court of International Trade similarly blocked another set of Trump-era tariffs, ruling that the president could not use emergency powers to enforce them.
However, the U.S. Court of Appeals for the Federal Circuit later issued a stay on the Trade Court's ruling, temporarily reinstating the so-called "reciprocal" tariffs while litigation over their legality proceeds.
Contreras' decision was unaffected by the appellate stay, although the judge put his ruling on hold for 14 days to give the administration time to file an appeal.
Newsom commended the courts' decisions against the tariffs, describing them as particularly "rewarding" for small businesses that have been disproportionately impacted by the trade measures.
"California was the first to sue Trump over these unlawful tariffs, and now the courts are saying exactly what we argued from day one," Newsom said. "Families in California and across the country have felt the real cost of Trump's ego-driven trade war: canceled shipments, layoffs, business closures, even parents losing their homes."
Newsom reiterated the impact of the tariffs on one segment of the economy.
"This is real. It's consequential. And it's small businesses, in particular, that are being devastated by this uncertainty," he added. ■