A bill that aims to provide insight into the impact of federal tariffs on California's economy has received backing from the California Chamber of Commerce. SB 263, introduced by Senator Gonzalez of Long Beach, passed the Senate Transportation Committee with unanimous consent last week.
This urgency bill authorizes funding for a research study to be completed by January 1, 2026. The study will evaluate the effects of tariffs on the state's seaports, cargo airports, and land ports of entry. This initiative comes amid recent trade disruptions and uncertainties caused by tariff implementations which have impacted California's economic landscape.
The research, funded through SB 263, seeks to offer insight for lawmakers and businesses on how tariffs influence the state's economic measures, including output, employment, affordability, tax revenues, and port revenues. It will also analyze tariffs' effects on specific sectors such as agriculture and manufacturing, as well as their impact on financing and funding availability for port infrastructure.
California's economy is significantly driven by international trade and investment, providing benefits across businesses, communities, and consumer segments. The dynamic state economy relies on the exports and imports handled by California companies and its transportation gateways, along with the movement of human and capital resources.
By recognizing vulnerabilities and opportunities within California's trade infrastructure and relationships, SB 263 aims to help California businesses remain competitive globally. This is particularly pertinent during a period when Californians face affordability issues, as understanding tariff impacts on consumer prices could uncover strategies to alleviate cost-of-living pressures and promote economic progress.
The California Chamber of Commerce maintains a supportive stance on free trade policies that contribute to economic growth and job creation. The organization opposes protectionist measures, citing the disruptive effects on global supply chains, consumer prices, and the competitiveness of California enterprises.
The next step for SB 263 is consideration by the Senate Business, Professions and Economic Development Committee.