California governor warns of "code red" economic emergency due to high tariffs

In a recent advertisement, California Governor Gavin Newsom warned the American public of the "real" and "serious" consequences of recent high tariffs, describing the situation as a "code red" economic emergency.

"California is now the fourth-largest economy in the world. Innovation, manufacturing, agriculture. And we've done it by reducing trade barriers and delivering for American consumers," Newsom said in the ad posted online Friday.

"But the Trump administration is putting all of that at risk, halting delivery of essential goods through our ports. Today, it's school backpacks. In a few months, it'll be Christmas toys," he said.

In an interview released on Saturday, Newsom explained that he aired the advertisement on the conservative Fox News channel this weekend, hoping the US administration "understand and absorb the impacts."

Furthermore, Newsom depicted a more dangerous situation in his interview, saying a "code red" economic emergency had been triggered by the reckless tariff policies, which had already severely impacted California's major ports.

The Port of Oakland in northern California had suffered a 20 percent decline in cargo volumes, while the ports of Long Beach and Los Angeles in southern California have reported a 35 percent drop, with cargo bookings plummeting by 60 percent, said the governor.

These consequences cannot be easily or quickly resolved. "It takes weeks and weeks for decisions made overseas and purchase orders to go into effect before products end up on the shelves. Decisions being made today — or indecision around making commitments — will have a profound impact on tomorrow," he said, adding that even if the policies were reversed immediately, the impacts would continue to be felt over the coming months.

The governor also challenged the rationale for implementing high tariffs. "If you want to impose tariffs to bring manufacturing and industrial policy back to the United States, they have to be predictable. You need stability. You must send a signal to small business owners that this approach is here to stay," he said. "But every few hours, every news cycle, there's another zig and zag. It's chaotic. There's no rhyme or reason."

Newsom has been openly stating that California has been severely affected by the high tariffs. Meanwhile, California was the first US state to file a lawsuit against the federal government over tariff issues.