Governor Gavin Newsom on Trump’s 100 Days of Failure

Summary

The MeidasTouch Podcast: Governor Gavin Newsom on Trump’s 100 Days of Failure

Release Date: April 24, 2025

In the latest episode of The MeidasTouch Podcast, hosts Ben, Brett, and Jordy Meiselas engage in a comprehensive and insightful conversation with California Governor Gavin Newsom. The discussion delves into the ramifications of former President Donald Trump's economic policies, particularly focusing on tariffs, their impact on California’s economy, and the broader implications for American democracy.

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Economic Impact of Trump’s Tariffs

Governor Newsom opens the dialogue by reflecting on the immediate and profound effects of Donald Trump's tariff announcements. He states, “[00:17]... it’s 10x worse than we even feared,” highlighting the severe degradation of global trust and economic stability caused by the unilateral tariffs. California, being the largest state economy in the U.S.—with an IMF-ranked position as the fourth largest global economy—is disproportionately affected. Newsom emphasizes, “[01:09]... no state has been more impacted by the tariffs economically,” underscoring California's pivotal role in the national and international economic landscape.

Lawsuit Against the Trump Administration

A significant portion of the episode centers on California’s legal battle against the Trump administration. Governor Newsom explains, “[01:12]... he has no unilateral authority to impose these tariffs,” pointing out the legal overreach and lack of proper authority under the 1977 construct. He notes the bipartisan support for the lawsuit, mentioning, “[01:12]... the Koch brothers backed a lawsuit saying exactly the same thing.” The governor further highlights the collective action taken by 12 other states joining the lawsuit, reinforcing the unified stance against the administration's policies.

Negotiations and Relations with China

Discussing international relations, particularly with China, Newsom provides an insider’s perspective on the strained negotiations. He humorously references a meme of Xi Jinping reading "The Art of the Deal," illustrating the disjointed nature of Trump’s negotiation tactics. “[05:13]... Trump negotiating against himself,” he quips, emphasizing the ineffective and self-sabotaging strategies employed. The governor details the tangible impacts on California’s infrastructure, noting the decline in cargo through the Port of Long Beach, a critical gateway for 40% of U.S. goods. He personalizes the issue by stating, “[05:13]... 80% of those toys... come from China,” highlighting the direct effect on consumers and businesses alike.

California’s Economic Dominance

Governor Newsom proudly announces California’s status as the fourth largest economy globally, surpassing Japan. “[07:33]... $4.1 trillion a year economic output,” he declares, emphasizing the state’s substantial contribution to the U.S. GDP and its role as a donor state, having contributed $83.1 billion more to the federal government than it received. He contrasts this with Texas, illustrating California’s fiscal responsibility and economic health. Newsom dismantles myths about red and blue states, asserting, “[07:33]... murder, it is a mythology,” and reinforcing the factual economic strength of blue states like California.

The Value of Social Programs

A key theme in the discussion is the importance of investing in social programs and education. Newsom articulates, “[09:19]... we have a conveyor belt for talent that's second to none,” lauding California’s robust university systems and workforce development initiatives. He argues that such investments foster innovation and entrepreneurialism, critical drivers of economic growth. “[09:19]... 18% of the world's research and development... pushing out the boundaries of discovery,” he highlights California’s leading role in global research and development, which underpins its economic and technological advancements.

Protecting the American Dream

Concluding the interview, Governor Newsom delivers a passionate message about safeguarding the American Dream amidst political and economic turmoil. “[12:10]... don’t give in to the cynicism, don’t give in to the fear,” he urges, encouraging Americans to stay vigilant and proactive. He emphasizes personal and collective agency in shaping the future, stating, “[12:10]... the future is not something to experience, it’s something to manifest.” Newsom inspires listeners by highlighting the resilience and determination of the American people, asserting confidence in their ability to overcome challenges and restore democratic integrity.

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Key Takeaways:

• Severe Economic Consequences: Trump's tariffs have had a more detrimental impact than anticipated, severely affecting California’s economy and eroding global trust.

• Unified Legal Resistance: California leads a bipartisan effort in suing the Trump administration, supported by other states and even conservative figures like the Koch brothers.

• Strained International Relations: Ineffective negotiation tactics with China have led to significant disruptions in trade, particularly affecting California’s ports and manufacturing sectors.

• Economic Powerhouse: California’s substantial economic output and contribution to the federal government underscore its vital role in the national and global economy.

• Investment in People: Strong investment in education, research, and social programs is pivotal for fostering innovation, economic growth, and maintaining the American Dream.

• Call to Action: Governor Newsom calls for sustained vigilance, resilience, and proactive engagement from the American populace to counteract political and economic challenges.

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This episode of The MeidasTouch Podcast offers a thorough examination of the intersection between political actions and economic outcomes, providing listeners with a nuanced understanding of current events and their broader implications. Governor Newsom’s insights paint a vivid picture of the stakes involved and the paths forward for both California and the United States as a whole.

Transcript

[Interviewer]

I'm joined by California Governor Gavin Newsom. Governor, when you and I last spoke, it was the day after Donald Trump announced his tariffs against the world. You warned everyone how dangerous and harmful it was going to be. Three weeks later, what's your reaction?

[Gavin Newsom]

Well, I mean, 10x worse than we even feared. And we were, we were pretty sober when we got together the day after, quote, unquote, Liberation Day. But we've seen what's happened to the world economy. The coin of the realm is trust and how we have eroded trust around the globe. How this is going to take, I think, years and years and years to unwind, despite what Donald Trump believes and how the markets are behaving as they zig and zag. And as you know, since then, California, the largest state in our Union, size of 21 state populations combined, now the fourth largest economy in the world, based on IMF figures that just came out, International Monetary Fund figures yesterday. No state has been more impacted by the tariffs economically. And as a consequence, we're the first state to sue the Trump administration. And we're damn confident that we're going to win that lawsuit.

[Interviewer]

Tell us about that lawsuit, Governor. How important is it?

[Gavin Newsom]

Well, it's critical. I mean, he has no unilateral authority to impose these tariffs. And interestingly, the Koch brothers backed a lawsuit saying exactly the same thing. So look at the ideological prism here. A big blue state and a progressive governor and some of the most conservative, quote, unquote, leaders in this country representing the same point of view. And you may have seen just in the last 24 hours, 12 states attorney generals just joined and are also suing the Trump administration making exactly the same claim. And it's interesting, final point on that. The Trump administration is trying to change the jurisdiction for our case and our suit, which is just another example of how concerned I think they are. And again, any legal scholar looks at this, it seems pretty black and white. He simply cannot assert the authority he has under this 1977 construct to unilaterally advance tariffs. So we think we are in a very good and solid position since that.

[Interviewer]

Day that Donald Trump calls Liberation Day, which I think we call devastation or liquidation day. You know, Donald Trump's been sending messages of tariffs on tariffs off, tariffs on, tariffs off. Then there are these, like, private meetings that are taking place where things are, like, leaked out, and then the markets become very volatile. What message is Donald Trump sending to the business community with just the volatility he's creating?

[Gavin Newsom]

Well, he's open for business. I mean, free enterprise to crony capitalism overnight. I mean, every single one of those meetings represents sort of a side deal, a special interest of sorts. Some may be nations, others may be companies the size of nations that make political contributions. We saw this in Trump 1.0. There was an independent analysis done as it relates to the relatively modest tariffs that he imposed in his first term and how he decided to pull some of those tariffs back. And now they were directly connected to contributors. I mean, this is serious stuff. It's happening in just plain site. And he wants everyone to kneel and everyone to reach out directly to him. And this is democracy. This is Donald Trump's version of it. And so it's a very serious moment. And that's why there's a series of purpose and grateful with these attorney generals in these 12 other states. And I think everybody not just crying foul, but getting a little bit more strategic. And I appreciate, you know, we're seeing this party's buzzing now. It's come alive at the grassroots. People are showing up, stepping up. They're not giving into the cynicism and fear. There was some resignation. I would argue for a while, felt that way in some corners right after the election. That's no longer the case. And it's really, it's really wonderful to see that energy you see in the AOC rallies and Bernie rallies, which is just incredible, but also just the enthusiasm that all of us feel when we see a guy like Cory Booker stand up for 25 hours or. Or what Chris did down in El Salvador. It's just great to see people being accountable at this moment. And I think states like California have a responsibility. We're now about to present our 16th lawsuit against Trump administration. We need to really start to assert ourselves from a position of strength.

[Interviewer]

You visited China in October of 2023. You met with Xi Jinping and other leadership in China. So you know how they negotiate, how they respond to threats. Now, Trump imposed a 145% tarif tariff on China, then China retaliated in kind. They cut rare earth minerals. Trump's been claiming that he's been talking with China, but China's foreign minister today said that's fake news. There's no discussions taking place until and unless Trump wants to remove the unilateral tariffs. What do you make governor of Trump's negotiations with China?

[Gavin Newsom]

Well, I saw a meme of Xi reading the art of the deal, laughing. I think it summed everything up that was on my feed yesterday. I mean, here's Trump negotiating against himself, and I want to Be careful here because I love my country, I love this nation. But it's just interesting the approach that she has taken, which seems a little bit more steady handed as it relates to his approach on retaliatory tariffs. Now the impacts of that are outsized in my state. You know, I've got the port of Long Beach, 40% of the goods move in this country in LA and Long beach come through and they're starting to dry up. That's not a gross exaggeration. It's modest one drying up. But they're starting to significantly decline in terms of amount of cargo coming in to the states. One of the principal reasons we felt we had standing in a lawsuit. This is the number one manufacturing state in America. It's the number one state in terms of direct foreign investment and two way trade. We dominated every category, economic category, there are no peers. And ag and forestry jobs across the spectrum. This state is disproportionately impacted. And so I just, I pray that we can get a deal with China because of its outsized influence. And I'll just argue one simple point as a guy with four young kids. You know, 80% of those toys that are supposed to be coming in on the ports right now for the holidays, they come from China. And so this impact is, to me, it's personal. Yeah, professional responsibility is a fiduciary for the state. I'm a small business person myself and businesses directly impacted. So it's not an intellectual exercise. This one is absorbed in every corner of our society. Democrat, Republican, rural, urban. These impacts are extraordinary. And what he's done is extraordinary. And we have to be extraordinarily vigilant and forceful in our response.

[Interviewer]

Governor, California just passed Japan as the fourth largest economy in the world, which of course sounds like a big deal you posted about it. You know, why is this just an important thing for us to all, you know, recognize, you know, more broadly geopolitically?

[Gavin Newsom]

Well, it's a point of pride. I mean, it's a big blue state with $4.1 trillion a year economic output. We're 14% of the GDP in the United States of America, 50% more than the next big. I also want people to understand that this is a donor state. In 2023, Californians contributed $83.1 billion more than we received from the federal government. And by the way, for your viewers, they may be interested in this, that state, Texas took $71.1 billion more than they provided the federal government. California 83 billion contributor taker Texas. And I Say that to make a broader point, 71% of the economic output in the United States of America, Blue counties, blue metros, blue states with lower deaths of despair rates, higher wages, more productivity, greater growth, lower death rates. As it relates to murder, it is a mythology that somehow red states are dominating and blue states are struggling. It's factually untrue. And I think today, as it relates to the illumination from the International Monetary Fund that did the analysis that we highlighted is just a proof point of states like California, big blue states all across this country that continue to be the tent pole of the U.S. economy.

[Interviewer]

You know, Governor, Texas seems to take the Trump approach at the government level. Attack the citizens, take away freedoms, ban the books, cut social programs. But California's done the opposite. California has grown because it has invested in good social programs. So you show that that actually lead leads to growth. Why is investing in good social programs good for business and the economy?

[Gavin Newsom]

Well, we had a formula for success. You know, we have a conveyor belt for talent that's second to none and that's being vandalized all across this country. It's our university system, the UCs, the CSU's, our community college system, the backbone of our workforce development that conveys more talent than any other system in the United States. And again, we're seeing that attacked by for ideological reasons all across this country. Good for Harvard for standing firm and standing tall. And that's a call to arms for all universities to follow suit and do the same. We invest in research and development. 18% of the world's research and development, number three on the planet, China, Germany and California. The biggest investment in research and development, pushing out the boundaries of discovery. More scientists, engineers, researchers, more Nobel laureates, more venture capital coming from California and the energy state in the nation. That innovation, the entrepreneurialism, the reason we call this a coast of California is the coast of dreams. Because we're a dream maker for people all around the globe that want to come here for riches and new beginnings. 27% of this state is foreign born, majority minority state, living and advancing together across every imaginable difference. That's what makes us great. We celebrate our interesting differences, as Clinton said, but we also unite around the things that bind us together. And it's a point of pride, all of that under assault, under attack. Human capital, economic impacts of these tariffs, human capital being assaulted with these immigration raids and the chill as it relates to legal immigration, not just issues related to the border. And so all of these things, these are precious things. But all these Things are foundationally part of that formula for success that I think blue states understand at their core. You invest in people, you invest in opportunity, you invest in growth, and you create conditions where people feel included, they feel seen, they feel heard, and they come out and they take risks and a consequence. We're all rewarded for that. And so that's why, you know, I'm proud I've come from a state. There's the American dream and there's a California dream. There's only one state that's attached itself to a dream. And my job is to keep that dream alive, to push back against Trump and Trumpism and to continue to invest in our growth engines.

[Interviewer]

And finally talking about the American dream, which is under attack right now, people are scared, they're nervous. What's Donald Trump gonna post today? People are looking at their 401ks, their pensions, they're seeing all of this volatility. They're seeing people get disappeared off the streets. They're seeing Donald Trump show off meetings with people. The leader from El Salvador. Naive Bukele with all of that going on. Governor, finally, as we conclude this interview, just in general, what's your message to the American people right now in this moment, April 24, 2025, as we're recording this?

[Gavin Newsom]

You've never been more important. I mean, don't give in to the cynicism, don't give in to the fear, don't give in to the anxiety. That's what he counts on. It's shock and eyes coming. He's coming every day, every minute, trying to win one thing, the news cycle 24, 7, win the news cycle. So keep our eye on the ball, focus on what's important. Let's try to avoid chasing every damn rabbit. But the most important thing is we have to maintain our vigilance. We have to step up and step in. We have agency. We can shape the future. The future is not something to experience, it's something to manifest. It's decisions, not conditions, that determine our fate and future. So I say it all the time. It's not what happens to us, it's how we respond. And right now, the American people are responding in extraordinary ways. It's inspiring real people that understand what's at stake for themselves, for their kids and grandkids. And it's inspired, I think, inspired me to do more and do better. And so if we continue with that spirit, we're going to get back on track, we're going to win the damn midterms. We're going to get back the White House. And all we have to do is continue in this spirit with that sense of purpose, mission and meaning that's behind folks that are standing up for democracy, their families, their this nation, and the world we're trying to build.

[Interviewer]

California Governor Gavin Newsom, thanks for joining us here on the Midas Touch Network.

[Gavin Newsom]

It's good to be back with you everybody.

[Interviewer]

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