California Gov. Gavin Newsom said the state will file a lawsuit to stop Trump'scomprehensiveTariff policy, a move aimed at challenging the U.S. president’s unprecedented use of emergency power to subvert the global trade order.

The lawsuit, which will be filed by Newsom and state Attorney General Rob Bonta on Wednesday, is the second lawsuit to challenge Trump's "retaliatory" tariffs, andMay lead to judges limiting the president's power in trade。

Trump temporarily suspended higher rates but retained 10% tariffs on most countries earlier this month, after placing tough “retaliatory” tariffs on major U.S. trading partners. "President Trump's illegal tariffs are creating chaos for California's families, businesses and the economy, pushing up prices and threatening jobs," Newsom said.

The lawsuit will be filed in the Northern District Court of California,The court is asked to declare the tariffs imposed by Trump invalid and prevent them from being implemented.

Trump's aides have proposed several legal mechanisms for imposing tariffs, but most other avenues require the government to conduct research first, which will lead to slow implementation of tariffs.

But Trump ultimately chose to invoke the International Economic Emergency Powers Act of 1977 (IEEPA), which allows the U.S. president to impose tariffs on trading partners immediately in a state of national emergency.

In order to use the law,The Trump administration declared a national emergency, citing “the situation reflected by the huge and ongoing annual U.S. commodity trade deficit has sparked national security and economic security concerns.”

The Liberty Justice Center filed a lawsuit with the U.S. Court of International Trade earlier this week on behalf of five small U.S. businesses.

Attorneys in the case argued that the IEEPA could only be triggered when national security faces "unusual and special threats", sayingThe U.S. trade deficit is “neither an emergency nor an unusual or special threat”. "The trade deficit has been around for decades and does not pose a national emergency or security threat. In addition, the government has imposed tariffs on countries that have no trade deficit with the United States, which further weakens the government's justification."

Meanwhile, California's lawsuit argues that the IEEPA does not allow the U.S. president to impose tariffs and says Trump should seek congressional approval to take such "actions of great economic significance."

Any lawsuit that successfully blocks U.S. “retaliatory” tariffs would be a major blow to Trump’s trade agenda, although it would not affect the government’s tariffs on specific industries such as steel, aluminum and automobiles cited by other U.S. laws.

He was elected governor of California in 2018 andSeen as a potential future Democratic presidential candidateNewsom said California's lawsuit was to represent "an unbearable American family that could continue the chaos."

According to Newsom's office, California is the fifth largest economy in the world. It is also home to the Port of Los Angeles, the busiest port in the United States.