California’s economy has surpassed that of Japan, ranking it as the world’s fourth largest economic force. Governor Gavin Newsom highlighted this growth by referencing data from the International Monetary Fund (IMF) and the US Bureau of Economic Analysis. California’s GDP reached $4.10 trillion in 2024, surpassing Japan’s $4.01 trillion. Now, only Germany, China, and the US as a whole have larger economies than California.
Newsom stated, “California isn’t just keeping pace with the world – we’re setting the pace.” This comes as Newsom has been vocal about his opposition to President Donald Trump’s tariffs and his concerns about the state’s economic future. California leads the nation in manufacturing and agricultural production and is home to significant technological innovation, as well as the global entertainment industry and the country’s two largest seaports.
In response to Trump’s tariffs, Newsom filed a lawsuit challenging his authority to implement these levies, which have disrupted global markets and trade. Trump has implemented 10% tariffs on nearly all countries importing to the US, and additional 25% tariffs on Mexico and Canada. The trade war with China has seen import taxes of up to 145% on Chinese goods entering the US, with China retaliating with a 125% tax on American products.
Although celebrating this achievement, Newsom has expressed worries about the future of the state’s economy due to the federal administration’s tariff policies. He stated, “While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected.”
On the other hand, Trump argues that his trade policies are leveling the playing field after years of the US imposing taxes. The tariffs aim to encourage factories and jobs to return to the US, with a reduction in interest rates to decrease borrowing costs for Americans. The World Economic Outlook report by the IMF projected that Japan’s economic growth will be impacted by the tariffs and the ongoing demographic challenges it faces.
Source: https://www.bbc.com/news/articles/cly80zlk1lyo
