California overtakes Japan to become the world’s fourth-largest economy
California State in US has overtaken Japan to become the fourth-largest economy globally, as stated by the State Governor Gavin Newsom, who cautioned about the risks posed by President Donald Trump’s tariffs to the state’s rapidly expanding wealth in the technology sector.
The nominal gross domestic product (GDP) of the Golden State reached $4.1 trillion in 2024, based on preliminary data from the US Bureau of Economic Analysis, surpassing Japan’s nominal GDP of $4.02 trillion during the same timeframe, as reported by the International Monetary Fund. Consequently, only the United States, China, and Germany have larger economies than California, which achieved a growth rate of 6% last year, outpacing all three nations.
Newsom remarked, “California is not merely keeping up with global trends — we are leading them.” He emphasized that the state’s economic success stems from investments in its populace, a commitment to sustainability, and a belief in innovation. However, he also expressed concern that the state’s economic strength is jeopardized by “the reckless tariff policies of the current federal administration.” He asserted, “California’s economy fuels the nation, and it must be safeguarded.”
As the most populous state in America, with approximately 40 million residents, California represented 14% of the national GDP in 2024, driven by sectors such as Silicon Valley, real estate, and finance.
Recently, Newsom initiated legal action against Trump regarding his unilateral implementation of extensive global tariffs through emergency powers, which the governor claimed have adversely affected Californian families and businesses. The lawsuit, submitted to federal court on April 16, contends that Trump does not possess the authority to impose tariffs on Mexico, China, and Canada, nor a 10% baseline tariff on imports from other countries.
According to Newsom, these tariffs are inflicting “immediate and irreparable harm to California, the largest economy, manufacturing, and agriculture state in the nation,” as they have “disrupted supply chains and inflated costs.”
The legal complaint contends that Trump’s use of the International Economic Emergency Powers Act to impose tariffs was both “illegal and without precedent,” asserting that such broad measures necessitate Congressional approval. In 2024, California participated in approximately $675 billion of bilateral trade, with Mexico, Canada, and China identified as its primary trading partners. The state reported that over 40% of its imports originated from these nations, totaling $203 billion out of more than $491 billion in overall imports for the previous year. SOURCE: Lex Harvey, CNN Business
