Press Release

Majority Leader Gonzalez Responds to Federal Tariff Chaos

SACRAMENTO – Ahead of new tariffs expected to be announced next week, Majority Leader Gonzalez’s (D-Long Beach) SB 263 – the Protecting Residents, Industries, and California’s Economy (PRICE) Act – passed the Senate Transportation Committee on an 14-0 vote. The hearing came as the California Legislature responds to chaos and confusion at the federal level regarding tariffs by strengthening our partnerships with international allies and working to support consumers, workers, and businesses from harmful economic uncertainties. 

 

The White House intends to unveil further plans for new tariffs on April 2nd, as uncertainty continues to shake the U.S. economy and increase the threat of a recession. The chaotic and disruptive manner in which tariffs have been announced, paused, retracted, and changed have caused widespread concern in key California industries, threatened millions of jobs connected to international trade, increased the likelihood of rising consumer prices, and provoked retaliatory tariffs from other nations.

 

“In the face of rash changes to international trade policy, SB 263 will provide the information we need to design data-driven, commonsense policies to bring down the cost of living and support California workers, families, and businesses,” said Majority Leader Gonzalez. “These are macro-level economic decisions, but they have real impacts on Californians – how much you pay for groceries, the cost to build a home, and the challenges for California businesses could all grow because of these sweeping, nonstrategic tariffs.”

 

The California Legislature is responding quickly to protect the state from these nonstrategic actions. Majority Leader Gonzalez’s SB 263 would direct specified state agencies to study the impacts of tariffs imposed by the U.S. and retaliatory tariffs imposed by other nations on affordability, employment, key industries, and other economic factors so policymakers have comprehensive data to inform policy decisions.

 

"Our four seaports and our Mexican gateway are key components of a Southern California trade cluster that is an economic powerhouse, supporting millions of workers and consumers in the agriculture, manufacturing, retail, and transportation sectors,” said Mike Jacob, President, Pacific Merchant Shipping Association. “But newly imposed and future tariffs will inevitably impact these benefits, creating a ripple effect that will be deeply felt at home. That is why we support SB 263 and Senator Gonzalez's request for the State of California to evaluate, study, and assess the scope and scale of new tariffs' impacts on our economy, jobs, and people's everyday lives.”

 

“Indiscriminate and rapidly changing tariffs have created uncertainty for California businesses and consumers, which negatively impacts jobs and may lead to higher prices,” said Rachel Michelin, President and CEO of the California Retailers Association. “Every industry and everyday product necessities like food, personal hygiene and medical safety equipment will be impacted by tariffs. These increases in the cost of living and the cost of doing businesses could be detrimental to California’s economy, especially for families already struggling to make ends meet. We need SB 263 to give us the best information possible and provide the certainty businesses and consumers need to make informed choices.”

California is also continuing to strengthen our existing partnerships with international allies. Last week, the California State Senate was joined by Canadian Consul General Rana Sarkar to celebrate Canada at Capitol Day. Ongoing conversations and collaboration on international trade and other shared concerns are underway with the Consuls General of Canada and Mexico. 

 

“The California State Legislature is committed to maintaining our international partnerships on a variety of important issues, including trade,” said Majority Leader Gonzalez. “Protecting California families, workers, and businesses from harm is my top priority – and I believe the best way to do that is through collaboration with all stakeholders in California as well as our neighbors in Canada and Mexico.”

 

For a clip of Majority Leader Gonzalez’s remarks during today’s hearing, click here.

 

###

 

Majority Leader Lena Gonzalez proudly represents one million residents in California’s 33rd Senate District, which encompasses Southeast Los Angeles, the City and Port of Long Beach, Lakewood, Signal Hill, and Catalina Island. As Senate Majority Leader and Chair of the California Latino Legislative Caucus, she is a dedicated advocate on key priorities that impact Californians from economic development and environmental justice to LGBTQ+ and women’s rights, digital equity and more. Majority Leader Lena Gonzalez has championed major policies, including broadband for all, expanding paid sick leave, advancing clean transportation incentives, and ending neighborhood oil drilling. She lives in Long Beach with her family. To learn more, visit www.sen.ca.gov/gonzalez.

 

The Pacific Merchant Shipping Association (PMSA) is an independent, not-for-profit association focused on global trade. PMSA operates offices in Oakland, Long Beach and Seattle, and represents owners and operators of marine terminals and U.S. and foreign vessels operating throughout the world.

 

The California Retailers Association is the only statewide trade association representing all segments of the retail industry including general merchandise, department stores, mass merchandisers, online markets, restaurants, convenience stores, supermarkets and grocery stores, chain drug and specialty retail such as auto, vision, jewelry, hardware and home stores.