Governor Newsom On Courts Blocking Trump Tariffs

Summary

Podcast Summary: The MeidasTouch Podcast – "Governor Newsom On Courts Blocking Trump Tariffs"

Podcast Information:

• Title: The MeidasTouch Podcast
• Host/Author: MeidasTouch Network
• Episode: Governor Newsom On Courts Blocking Trump Tariffs
• Release Date: May 29, 2025

In this episode, the Meiselas brothers—Ben, Brett, and Jordy—engage in a compelling discussion with California Governor Gavin Newsom. The conversation delves into recent federal court decisions invalidating former President Donald Trump's tariffs, the subsequent impact on California's economy, the inaction of Republican lawmakers, Trump's contentious relationship with Federal Reserve Chairman Jerome Powell, and looming concerns over the national budget bill's effects on healthcare and social services.

---

1. Federal Court Decisions Blocking Trump's Tariffs

Key Discussion Points: Governor Newsom shares his reaction to two significant federal court decisions that nullified Trump's tariffs, highlighting the legal and economic ramifications.

Notable Quotes:

• Governor Newsom [00:20]:
  "It's raining tacos today. I mean it's not a good day for Donald Trump and his central economic program."
  "We were the first state to introduce a lawsuit under the International Economic Emergency Powers Act."
  "We're very, very pleased at this moment... that these tariffs have been thrown out."

Insights:

• The US Court of International Trade granted summary judgment against Trump's tariffs.
• Judge Contreras blocked the tariffs as unlawful.
• Governor Newsom emphasizes the judiciary's role in protecting small businesses from unilateral federal actions.
• Despite the favorable court decisions, there's an anticipation of continued tariff enforcement attempts by the Trump administration.

---

2. Impact on California Ports and Small Businesses

Key Discussion Points: The conversation shifts to the tangible effects of Trump's tariffs on California's infrastructure and small businesses, particularly focusing on the ports of Los Angeles and Oakland.

Notable Quotes:

• Governor Newsom [01:39]:
  "The ports in L.A. saw 17 cancellations of vessels... projecting in June."
  "We’re seeing price pressures... impacts to small businesses disproportionately."
  "This is real. That's consequential. And it's small businesses in particular that are being devastated by this uncertainty."

Insights:

• Significant cancellations of shipping vessels have led to a 15% decline in container ships arriving at Oakland.
• Small businesses, including local manufacturers and family-owned enterprises, are facing severe financial strain.
• Governor Newsom recounts personal stories, such as a young woman struggling to sustain her baby supplies business and a bike manufacturer unable to afford tariffs, underscoring the human impact of these policies.

---

3. Republican Lawmakers' Inaction

Key Discussion Points: Governor Newsom critiques the Republican Party's silence in the face of economic turmoil caused by Trump's tariff policies.

Notable Quotes:

• Governor Newsom [07:08]:
  "Appalling. Shameful. Shameful."
  "They ceded oversight to Donald Trump illegally."
  "The editorial board of the Wall Street Journal called it the dumbest trade war in history."

Insights:

• Despite evident economic distress, most Republican legislative leaders remain silent or quietly celebrate the court decisions nullifying the tariffs.
• Acknowledges a few exceptions, such as Rand Paul and Ted Cruz, who have spoken out against the tariffs.
• Highlights the lack of congressional oversight and the party's failure to address the resulting economic chaos.

---

4. Trump's Attack on Federal Reserve Chairman Jerome Powell

Key Discussion Points: The discussion transitions to former President Trump's public criticisms of Federal Reserve Chairman Jerome Powell and the broader implications for economic policy and market stability.

Notable Quotes:

• Governor Newsom [09:31]:
  "He has to say it because the markets remember... Stop talking about replacing them."
  "You're putting that at risk."
  "This is an area where even Trump recognized his own recklessness."

Insights:

• Trump’s fluctuating stance on Powell creates uncertainty in the financial markets.
• Powell's reaffirmation of monetary policy independence is seen as a stabilizing force amidst Trump's unpredictable economic maneuvers.
• Governor Newsom underscores the importance of maintaining trust and stability in the Federal Reserve's operations for the credibility of the U.S. economy.

---

5. Concerns Over the National Budget Bill and Its Effects on Healthcare

Key Discussion Points: Governor Newsom expresses deep concerns regarding the recently signed budget bill, which relies on tariff revenue—a source now undermined by the court's decisions.

Notable Quotes:

• Governor Newsom [10:49]:
  "It's one of the most fiscally irresponsible things that's happened in our lifetime."
  "3.4 million Americans will lose support if that bill passes."
  "We have a lot to lose, but we also assert ourselves."

Insights:

• The budget bill's reliance on tariff revenue is rendered ineffective due to the invalidation of tariffs, exposing a significant fiscal shortfall.
• Elon Musk's critique is cited, emphasizing the bill's role in exacerbating the national debt.
• The potential impact includes the loss of healthcare benefits and SNAP (Supplemental Nutrition Assistance Program) benefits for millions of Americans.
• Governor Newsom discusses ongoing legal efforts to safeguard Medicaid and other support systems from budget cuts, highlighting the critical role of state actions in protecting vulnerable populations.

---

6. Conclusion and Call to Action

Governor Newsom wraps up the discussion by reiterating the severity of the economic challenges posed by the Trump administration's policies and the urgent need for legislative and judicial interventions to mitigate the adverse effects on small businesses and essential social services.

Final Remarks:

• Emphasis on the bipartisan support for the court decisions blocking the tariffs.
• A call for the Senate to address the flawed budget bill and protect America's most vulnerable citizens.
• Assurance of continued vigilance and legal action to combat any further economic detrimental policies.

---

Overall Insights: This episode of The MeidasTouch Podcast provides an in-depth analysis of the intersection between federal policies, judicial actions, and their tangible impacts on California's economy and beyond. Governor Newsom articulates the cascading effects of Trump's tariff policies, the significant strain on small businesses, and the critical failure of Republican lawmakers to provide necessary oversight and legislative support. Additionally, the conversation highlights the precarious relationship between the executive branch and independent economic institutions like the Federal Reserve, underscoring the broader implications for national economic stability and the well-being of ordinary Americans.

For listeners seeking a comprehensive understanding of recent economic developments and their real-world impacts, this episode offers valuable insights and firsthand accounts from a key political leader navigating these turbulent times.

Transcript

[Interviewer]

I'm joined by California Governor Gavin Newsom. Governor, I want to get your reaction to these two federal court orders invalidating Trump's tariffs against the world. Yesterday, the US Court of International Trade granted summary judgment against Donald Trump. Earlier today, Judge Contreras blocked Trump's tariffs as unlawful. Your reaction, Governor?

[Gavin Newsom]

Well, I mean, it's raining tacos today. I mean it's not a good day for Donald Trump and his central economic program. These tariffs which we've said from day one. California, as you know, I was on your show and privilege of sharing with you and your viewers, we were the first state to introduce a lawsuit under the International Economic Emergency Powers Act. And basically the judgment said exactly what we said in our brief. And so we're very, very pleased at this moment, this brief moment, that these tariffs have been thrown out. But the reality is the federal administration, at least the Trump administration, is now moving to get a stay in federal courts. And I imag they will be imposing potentially under different rubrics, additional sanctions, import taxes, which they can impose 15% over 150 day period under the Trade Act. I imagine this is hardly the last we'll hear about tariffs under the Trump administration.

[Interviewer]

I want to show this photo that you posted recently about how family businesses and our ports are literally paying the price for Trump's unlawful and disastrous tariffs. Governor, can you give us a sense of what's going on today, May 29th at the ports of Los Angeles and throughout California?

[Gavin Newsom]

Actually, yeah. I mean the ports in L a, they saw 17 cancellations of vessels they already have seen now as we book in advance in June, 10 cancellations already that we're projecting in June. We had a 15% decline in May in the number of container ships coming in to Oakland. We're seeing the price pressures, you're seeing that across the country, the impacts to small businesses disproportionately. That's why that D.C. circuit Court decision today was so rewarding for small businesses. It was on behalf of two children's toy manufacturers and it was successful again, very similar to the California case. And so this has already had an impact and the impacts would be even more acute as it relates to shortages and supply constraints that are inevitable if this continues. So look, we're in this chaotic moment, it's self inflicted by the Trump administration. That chaos continues. The damage has been done. We can't overstate or understate the impacts of the damage. But we have to, I think at least applaud our courts and remember that international court, which most people don't even know existed. It was a bipartisan. You had a Trump appointee. You had a Reagan appointee. Yes, they're still around. You had a more recent appointee of a Democratic administration, and they were unanimous in condemning the act, the unilateral decision under the IEECP that Trump advanced.

[Interviewer]

You know, Governor, what's concerning, though, as well, about what you're saying is when Donald Trump tacoed in Switzerland with China and caved on the 145% tariffs, brought him to 30% tariffs, I think there was some expectation that all of a sudden a light switch would turn on. He tacoed light switch ports returned to normal. That's not happening, right?

[Gavin Newsom]

No. And look, he continues to double down on stupid on this stuff. And we've seen it over and over. He loses, he gets more angry. I mean, we could joke about the taco, but that frame, I mean, that came from the Financial Times. People are literally making billions and billions and billions of dollars. The financial markets have anticipated Trump's incapacity to be consistent, to provide any stable rationale for his economic policies. They're chaotic. He changes them on a whim, on a basis of a phone call. You could talk about crony capitalism in that frame. And he changes them on the basis of where the markets are going, and people are gaming that out. And so this notion that he was challenged on that point in the White House yesterday and reacted to it with such disdain only reinforces the likelihood that he'll react accordingly and consistently in this respect by overreacting to it. And that's why I think the next few hours and the next few days will be very interesting. And hardly is he going to, I think, shift course 180 degrees.

[Interviewer]

Let's talk about the people impact in the great state of California. How is this impacting the dock workers, the truckers? What are you seeing? There was a bad jobless claims report that exceeded expectations this morning. Nationally, jobless claims rose 240,000 in the past week. This on the first quarter economic contraction as well. So what are you making of all of this?

[Gavin Newsom]

Yeah, I mean, they updated those numbers, and instead of 0.3% decline in GP is 0.2%. The fact that we were growing 2.4% and now we're declining as an economy, the impact that's having in the aggregate. But you asked a specific question about small business. I've met with over a dozen small business members that literally, it's complete chill devastation. A young woman who said, I had to look in the eyes of my 8 year old and say, honey, you helped me inspire this business. When you were a baby. It's a baby business, baby supplies. We just made a deal with Target and Walmart and I leveraged the home and I don't know if I can keep the home. That's real. That's because of Trump's unilateral policies. Illegal, but unilateral policies. I met with someone I personally bought for the holidays. I bought my son a bike and had an electric component. This guy, he said, thank you. I have your email because it was part of the receipt. I'm embarrassed to reach out to you. He literally just sent this to me. He goes, I have a whole supply container, but I can't afford the tariffs in China. I literally, it's a family business. I cannot continue in this business. What can you do, Governor, to help? I said, we have this lawsuit. This was 48 hours ago. And I'm looking forward to emailing, mailing him back and reminding him of the impacts, this momentary impacts of this federal court decision today that may give him a reprieve. This is real and it's consequential. And it's small businesses in particular that are being devastated by this uncertainty.

[Interviewer]

One of the things you've consistently pointed out as well is that Republican lawmakers do not like these tariffs at all. Yet they pretend to, you know, be in favor of. They just, I guess just go mute. They go totally silent. And you know, the members of Congress, the House of Representatives and the senators, I mean, it's. If they want to pass legislation on this, you know, they control both the House and Senate. So can you speak to that, that, you know, that these Republicans are not just against it, but very against it, yet they say nothing in the face of catastrophe.

[Gavin Newsom]

Yeah. Appalling. Silence. Shameful. Shameful. And they've complete. I mean, the decision. I hope people read both decisions. I mean, it's about the complicity of Congress, the lack of oversight. You're in the majority. Do your damn job. Co. Equal branch of government. I mean, that was the principles of the founding fathers. They lived and died for this fundamental notion of co. Equal branches of government, government oversight. And they've completely ceded it to Donald Trump illegally. Donald Trump's taken advantage of that. And of course, there are always exceptions. There are a few courageous elected officials, interestingly, people that at least speak out, like Rand Paul, even Ted Cruz has spoken out against it. But I thought the ultimate expression of where the Republican Party actually is is always reflected in the editorial board of the Wall Street Journal that called it the dumbest trade war in history. Donald Trump. So they're all celebrating. The vast majority of these Republican legislative leaders are celebrating this decision quietly. But I think there's a chill because of the expectation again of what comes next. Because Donald Trump hates to lose. And he's one thing, if not, he's predictably unpredictable in terms of how he responds to these losses.

[Interviewer]

One of the things that's very concerning to our viewers as well as Donald Trump's attack on the chairman of the Federal Reserve, Jerome Powell. And Trump will say things implying that he wants to fire Powell and then kind of walk it back. And I never said that. And then, you know, which is kind of, again, it's kind of the whole taco. It's like, what day is it going to be? But again, this has real world implications. And Trump had Chairman Powell at the White House today. He invited Powell. Powell had to come up with a statement immediately, not knowing what the heck Trump was going to post, basically saying, at the President's invitation, Powell met with Trump today at the White House to discuss economic developments. Then he goes. Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook. Finally, Chairman Powell said that he and his colleagues will set monetary policy as required by law, to support maximum employment and stable process and will make those decisions based solely on careful, objective and non political analysis. I mean, the fact that he even has to say that coming out of the meeting is something. Huh?

[Gavin Newsom]

Well, I mean, and he has to say it because the markets remember, we're old enough to remember a few weeks ago where we were in the chaos in the international markets and folks were speed dialing Trump, all these folks that were there at the inaugural, et cetera, saying what the hell are you doing? Stop talking about Powell, stop talking about replacing them. You appointed him, Mr. President, in the first term, he's your guy. But he's an independent operator. And that is foundational in terms of the full faith and credit of the United States of America. You're putting that at risk. You've already put truth and trust at risk around the globe as it relates to our allies and the impacts we've had on our trading partners. But when it comes to the markets, he obviously felt that pressure. And look, at the end of the day, you know, the markets bat last and they bat a thousand. And Donald Trump, if nothing else, has been very sensitive to the markets, particularly the bond market. And so I'M not surprised by that statement by Powell. But this is an area where even Trump recognized his own recklessness.

[Interviewer]

Finally, Governor, just a lot of people across the country are worried right now. They're nervous. They see this disastrous budget bill. Are we gonna lose healthcare? Are we gonna lo our SNAP benefit? What's gonna happen to just what's your message as we go to the American people right now?

[Gavin Newsom]

Well, that got a lot worse, didn't it? That bill that the House just signed because it was predicated on getting tariff revenue, getting revenue from these tariffs. Now you can't even count on that. Which only further reinforces where Elon Musk himself was just 24 hours ago and saying, this blows a massive hole in the debt in the United States of America. It's one of the most fiscally irresponsible thing that's happened in our lifetime. And so the US Senate has a chance to fix that and correct for that. And I think today's announcement from these two courts, and I imagine there will be further discussions with further court decisions that will be very favorable to at least the cause of sanity and rationality, will only put additional pressure on the Senate to right the ship and make dramatic amendments in this bill. But at the end of the day, there's no way they can balance a damn budget. So unless they do it on the back of working folks and poor folks and completely renege on their commitment to protect the most vulnerable, protect folks under the Medicaid system. And so we'll continue to be vigilant on that. We'll continue to push back on that. We're now involved now in 22 lawsuits against the Trump administration. Obviously, we'll push back on any cuts to Medicaid. No state, incidentally, has more to lose on that. 3.4 million Americans will lose support if that bill passes. And it's just in form in the United States Senate here in California. So we have a lot to lose, but we also assert ourselves, and we have a lot of opportunity to do more in that space coming in the future.

[Interviewer]

Governor Newsom, thank you so much for your time. Good to be with you, everybody. Hit subscribe. Let's get to 5 million subscribers. Can't get enough Midas. Check out the Midas substack for ad. Free articles, reports, podcasts, daily recaps from Ron Filipkowski and more. Sign up for free [e-mail].