Newsom Slams Trump as America’s ‘Ultimate Loser’ Following Tariff Ruling Disaster

California Governor Gavin Newsom didn’t hold back on Thursday, unleashing a social media storm aimed squarely at President Donald Trump after the latter faced a crushing legal defeat regarding his backup tariff scheme. The Supreme Court had already dealt Trump a blow by ruling his broader tariffs illegal, and now a three-judge panel in New York has deemed his 10% global tariffs “invalid” and “unauthorized by law.”

Newsom, known for his sharp critiques of Trump, gleefully declared, “Trump continues to be America’s biggest loser,” on X, reveling in the president's misfortune. This ruling came after small businesses took a stand against the Trump administration, challenging the legality of the tariffs.

The Court of International Trade ruled 2-1 that Trump had overstepped his bounds, exceeding the tariff powers granted to him by Congress. While one judge on the panel argued that the law allows for more presidential leeway, the majority found otherwise. The implications are massive: if the administration appeals, it will first head to the U.S. Court of Appeals for the Federal Circuit and could eventually land in the Supreme Court.

Trump is already scrambling to replace the tariffs that were struck down earlier this year. The new tariffs, invoked under Section 122 of the Trade Act of 1974, were set to expire on July 24. The court’s decision has directly blocked tariff collections from three plaintiffs: the state of Washington and two companies, spice purveyor Burlap & Barrel and toy manufacturer Basic Fun! “It’s not clear,” said Jeffrey Schwab from the Liberty Justice Center, whether other businesses will still be on the hook for these tariffs.

“We fought back today and we won, and we’re extremely excited,” exclaimed Jay Foreman, CEO of Basic Fun!, celebrating their victory. This ruling marks yet another legal setback for an administration that has tried to fortify the U.S. economy with a fortress of import taxes. Last year, Trump invoked the 1977 International Emergency Economic Powers Act (IEEPA) to declare a national emergency over the trade deficit, justifying sweeping global tariffs.

The Supreme Court had already ruled in February that IEEPA did not authorize such tariffs. The U.S. Constitution reserves tax powers, including tariffs, for Congress, although lawmakers can delegate some authority to the president.

Trade lawyer Dave Townsend noted that this ruling could pave the way for more companies to challenge existing tariffs and seek refunds for payments made. “Other importers likely will now ask for a broader remedy that applies to more companies,” he warned, though he acknowledged that this case could also escalate to the Supreme Court.

Meanwhile, Trump is not sitting idle; he’s already taking steps to implement new tariffs. The administration is conducting investigations into whether 16 U.S. trading partners—including China, the EU, and Japan—are overproducing goods and undercutting American manufacturers. Additionally, they’re probing 60 economies worldwide to ensure compliance with labor standards and prevent products made with forced labor from entering U.S. markets.