Tariffs continue to play a significant role in shaping trade between the United States and its partners, with California businesses expressing concern over recent developments. The California Chamber of Commerce (CalChamber) has reiterated its stance on tariffs, stating that such measures create uncertainty and increase costs for entrepreneurs in the state.
According to CalChamber, while tariffs can be used as negotiation tools, their preference is for reducing both tariff and nontariff barriers through free trade agreements. The organization supports efforts to lower taxes and regulatory burdens as a way to promote job creation and economic growth. “The CalChamber opposes protectionist measures (including the raising of tariffs) which create uncertainty, disrupt global supply chains, raise consumer prices, limit choices of products for consumers, hinder the competitiveness of California businesses, and invite retaliation,” the group said.
The Chamber emphasized its ongoing commitment to international free trade and market access. “The California Chamber of Commerce, in keeping with longstanding policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business.”
Free trade agreements have removed billions in tariffs for U.S. exports. Current agreements include partnerships with countries such as Australia, Mexico, Canada, South Korea, Chile, Peru, Singapore and others. In 2024 alone, 43 percent of California’s exports went to these FTA markets—totaling nearly $79 billion.
CalChamber believes that building stronger economic ties through these agreements helps reduce unnecessary regulatory differences that can slow growth or affect jobs. The organization also backs bilateral, regional and multilateral deals it says are important for workers across many sectors.
Trade is a key factor in maintaining economic stability in California. Data from the U.S. Department of Commerce shows that goods exports from California reached $183 billion in 2024—a 2.5 percent rise from the previous year—and made up almost 9 percent of total U.S. goods exports. The state shipped products to more than 225 foreign markets last year; its top destinations included Mexico, Canada, China, Japan and Taiwan.
The effects of tariffs introduced during former President Donald Trump’s administration are still being felt across several sectors—including tourism—which Visit California notes has seen challenges linked to federal policies. While tourism spending hit a record $157 billion last year in the state, Visit California expects both overall visitation numbers and international arrivals will drop this year.
Retaliatory tariffs from trading partners remain a significant concern for exporters based in California—especially those sending goods to markets like Mexico or China that have imposed duties on American-made products following U.S.-initiated tariffs. Governor Gavin Newsom has directed his administration to seek new strategic partnerships abroad aimed at protecting local industries against such measures while urging traditional partners not to target goods produced within the state.
California ports have also experienced what industry officials call a “whipsaw” effect since talk about new tariffs began: unpredictable swings causing interruptions in cargo flows for both imports and exports.
With an economy valued at over $4 trillion—making it the world’s fourth largest—California relies heavily on international commerce across various sectors including agriculture and manufacturing. Trade benefits businesses statewide by supporting jobs as well as government revenues through activity at transportation gateways connecting local companies with global markets.
