California has become the first state to officially challenge US President Donald Trump's wide-ranging tariffs on foreign goods. On Wednesday, the state filed a lawsuit in a federal court.

Governor Gavin Newsom's team says that Trump went beyond his legal powers when he put these tariffs in place. The lawsuit, filed in San Francisco, argues that the tariffs have hurt California’s economy as well as the overall US economy. Governor Newsom and Attorney General Rob Bonta believe Trump misused his authority by putting the tariffs into effect without getting approval from Congress. In a statement, Newsom said, "President Trump's unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs." "We're standing up for American families who can't afford to let the chaos continue," he added.

On April 2, Trump introduced a 10% basic tariff on imports from every country. Higher tariffs were set for countries that, according to his administration, made it hard for US products to enter their markets. However, most of these higher tariffs were later paused for 90 days. The Trump administration did not ease up on China and went ahead with tariffs as high as 145% on Chinese goods, except for some electronic products. In response, China hit back with a 125% tariff on US goods. Meanwhile, the European Union has also planned its own set of retaliatory tariffs, but they are on hold for now.

Trump used the International Emergency Economic Powers Act of 1977 to support the tariffs, saying it gives presidents the power to deal with “unusual and extraordinary” threats to national security. But California’s lawsuit challenges this view, arguing that the 1977 law doesn’t allow a president to declare such a wide-reaching trade emergency or to impose tariffs alone without other approvals. California, which would be the world’s fifth-largest economy if it were a country, says it has been directly hurt by the tariffs. The state’s major trade ties with China, Mexico and Canada have been disrupted, and it argues that keeping these tariffs in place will cause even more damage.

Governor Newsom and Attorney General Bonta are asking the court to stop the Department of Homeland Security and Customs and Border Protection from enforcing the tariffs. California’s lawsuit adds to at least two other legal challenges. One case, filed by the Liberty Justice Centre in New York’s Court of International Trade, is trying to stop all the tariffs. Another case involves a small business owner in Florida who is challenging the tariffs on Chinese goods in federal court.