President-elect Trump’s proposed tariffs, ranging from 10% to 20% on all imports and significantly higher rates on goods from China and Mexico, could notably impact California’s economy. California businesses that import goods would bear the initial cost of these tariffs but would likely pass it on to consumers, leading to higher prices for items like electronics, produce, and petroleum. Economists warn that such measures could ultimately harm the U.S. economy and California’s exports, which might face retaliatory tariffs affecting key products like almonds, wine, and dairy. California, a major trade hub and gateway to Asia, would feel these tariff impacts acutely. Meanwhile, Governor Gavin Newsom, preparing for Trump’s return, met with President Biden and officials in Washington, D.C., to discuss disaster funds, health care, and environmental waivers while strategizing to counter potential Trump administration policies.
