Weaponization of tariffs leaves no party unscathed

The US government's tariff policy has cost the state of California billions of dollars. So much so that California Governor Gavin Newsom recently reaffirmed the state's commitment to maintaining open trade relations with China.

Newsom emphasized that the state is "over 2,000 miles from Washington and a world away in mindset". California even filed a lawsuit in April challenging the federal government over tariffs. California has become the first state to take such legal action.

The US government's "tariff weapon" has also drawn sharp criticism from financial titans such as US billionaire investor Warren Buffett, who said last week that "trade should not be a weapon". His remarks came after reports quoted data to show that the US economy has contracted for the first time in three years, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs.