California Governor Gavin Newsom discussed the effects of the Trump administration’s tariffs on the economy during an interview on ‘Kudlow.’ President Donald Trump, aiming to reduce global trade imbalances, has implemented tariffs that have been critiqued by Newsom as “quixotic.”
Despite securing a trade deal with Britain and indicating more agreements in the pipeline, Trump’s tariff policies have caused market volatility and drawn skepticism, including from Newsom. He described the administration’s approach to trade as “inconsistent and chaotic,” claiming it undermines investment and consumer confidence across various business sizes.
Trump’s trade strategy, according to Newsom, creates unpredictability not favorable to the administration’s goals. The president’s April announcement of widespread tariffs has disrupted financial markets and heightened recession fears. Initial tariffs on Chinese goods were set at 145%, with China responding by raising tariffs on U.S. goods to 125%.
Newsom criticized Trump’s methods as “reckless,” emphasizing the profound impact on global confidence and relationships. He expressed concern that Trump’s decisions appear driven by news cycles rather than a strategic plan. As negotiations with China were planned in Geneva, Newsom remained doubtful of their success.
Trump had recently floated the idea of an 80% tariff on China, though the final decision rested with U.S. Treasury Secretary Scott Bessent. White House press secretary Karoline Leavitt noted any concessions would require reciprocal actions from China.
As the trade discussions with China approached a critical juncture, Newsom argued Trump’s approach has hindered sound economic decisions. He advocated for a “step-by-step” strategy to address trade imbalances through a “worker-centered industrial policy.”