Can California ignore Trump’s Tariffs and negotiate trade with other countries? This is what the experts say

President Donald Trump finally announced his sweeping “reciprocal” tariffs on countries around the world Wednesday. The much-higher-than-expected ‘Liberation Day’ levies sent Wall Street traders into panic mode triggering a massive selloffs in US markets on Thursday and Friday.

In response to Trump’s tariffs, major US trading partners have vowed to retaliate with their own levies on US products. In an attempt to protect his state and spare the fifth-largest economy in the world, California Governor Gavin Newsom has directed officials in the state to “pursue new strategic trade relationships with international partners” according to an announcement on Friday.

As first reported by Fox News, Newsom posted a video message intended for world leaders and current trading partners to exempt products from California from any retaliatory tariffs. He assured them that the Golden State “remains a stable partner.”

“Donald Trump’s tariffs do not represent all Americans,” he said in a video posted on X. “And on behalf of 40 million Americans that live in the great state of California , the tentpole of the US economy… Our state of mind is around supporting stable trading relationships around the globe.”

“To our international partners: As the fifth largest economy in the world, the Golden State will remain a steady, reliable partner for generations to come, no matter the turbulence coming out of Washington,” Newsom stated in a press release, insisting “California is not Washington, D.C.”

Can California negotiate trade deals with foreign countries?

There is nothing that California can do to get around the tariffs imposed by Trump as the state is not a sovereign nation. Nor can countries specifically target or exempt goods made in California from retaliatory levies.

However, nations could avoid imposing tariffs on specific sets of goods that are commonly produced in the state. This has already been a tactic used with previously announced retaliatory tariffs from the European Union imposed on goods mainly produced in Red States.

California concerned about almond exports

One good that is of particular concern for the Newsom administration is almonds. The state produces 80% of the world’s supply, the majority of which is exported. Almonds account for 20% of California’s $23.6 billion in agricultural sales abroad making the most valuable food export for the state. Fox News reports that dairy products, pistachios, wine and walnuts are California’s other top exports according to the state’s department of food and agriculture.

California has more than $675 billion in two-way trade and a gross domestic product of $3.9 billion making it the fifth-largest economy in the world and a key driver of US economic growth. It is home to the most fortune 500 companies and is number one in the US for agriculture, business starts, high-tech, manufacturing and venture capital the state said in its press release.

More than 40% of goods California imports come from Mexico, Canada, and China. Imports from those three nations accounted for $203 billion of the over $491 billion the state imported in 2024 according to the governor’s press release. Newsom’s administration is also concerned that the tariffs will hamper the rebuilding efforts in Los Angeles after the devastating fire storms that sweep the city.

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