President Donald Trump’s economic policies are facing criticism following a jobs report that showed the weakest performance since the COVID-19 pandemic. An August 1 deadline for new trade deals also passed without formal agreements with key trading partners, raising concerns among businesses and families.
Governor Gavin Newsom addressed these issues in a statement: “While President Trump spends his time gaslighting and golfing, his economic chaos is becoming unbearable for everyday Americans trying to make ends meet. He is ripping apart everything we’ve built. Trump has betrayed all of us — failing to deliver on his ‘golden’ economic agenda. Instead of the age of progress, we are all bracing for the impacts of his utter failure.”
Recent employment data indicates layoffs at levels not seen since the pandemic, and revised figures show that a quarter-million fewer jobs were added in May and June than previously reported. The administration responded by questioning the credibility of those reporting these numbers.
The administration had promised firm deadlines for trade negotiations, but agreements with countries such as Mexico and India remain incomplete. Only one out of six announced deals, including those with Japan, has been formally signed. The lack of clarity around these deals is causing uncertainty for businesses.
Major consumer brands like Procter & Gamble, Mondelēz, Ford, and Hershey have warned during earnings calls that tariffs will increase costs on products ranging from snacks to cars. Small businesses face difficulties adjusting supply chains or lobbying for relief, leading to reduced investments and hiring.
Economists note that tariffs typically result in higher prices for consumers because companies often pass on increased costs. According to recent estimates, California households could see $25 billion in additional expenses due to tariffs and a loss of more than 64,000 jobs statewide. California businesses have already paid $11.3 billion in tariff-related costs from January through May 2025—more than any other state—and disruptions at ports have contributed to a decline in job postings related to trade and logistics.
In response to these developments, Governor Newsom and Attorney General Rob Bonta filed a lawsuit on April 16 challenging President Trump’s authority to impose tariffs under the International Economic Emergency Powers Act. The suit argues this action harms California’s economy; other courts have also ruled against similar uses of this authority.
