The Blubber

California Governor Gavin Newsom is set to announce on Friday afternoon that the state will begin forming “strategic” partnerships with countries imposing retaliatory tariffs against the U.S., in hopes of shielding California-made products from the impact, Fox News Digital has learned.

According to sources within Newsom’s administration, the move is a direct response to President Donald Trump’s sweeping "Liberation Day" tariff announcement, which imposes a flat 10% tariff on all imported goods, with even steeper tariffs targeting key trade partners.

California officials are especially concerned about the state’s almond industry, which is poised to take a massive financial hit. With countries like China, India, and members of the European Union expected to counter with their own tariffs, the state could lose billions in agricultural exports.

Almonds are California’s top agricultural export, accounting for roughly 20% of its $23.6 billion in overseas food sales and 2.5% of total state exports, according to the California Department of Food & Agriculture. The state produces about 80% of the world’s almond supply and exports most of it. Other major exports include dairy, pistachios, wine, and walnuts.

White House spokesperson Kush Desai dismissed the initiative, saying, “Gavin Newsom should focus on fixing homelessness, crime, regulation overload, and affordability in California instead of pretending to play diplomat.”

California, which has a $3.9 trillion economy—making it the fifth largest in the world—plays a huge role in U.S. trade, responsible for more than $675 billion in two-way trade and supporting millions of jobs. It’s also the nation’s largest importer and the second-largest exporter.

Mexico, Canada, and China are California’s top trading partners, accounting for nearly half of the $491 billion in goods imported by the state last year. Officials warn that the new Trump tariffs could disrupt supply chains in the California-Baja border region, making it more expensive to assemble goods that cross the border multiple times before reaching consumers.

The Newsom administration is also worried about how tariffs might affect the cost of critical materials—such as Canadian lumber—needed to rebuild areas devastated by wildfires in Los Angeles. Current duties on Canadian lumber sit at over 14% and could rise to nearly 27% this year.

Meanwhile, President Trump hailed his new tariff policy as a turning point for the country, saying Thursday, “The markets are going to boom, the country is going to boom, and the rest of the world is now eager to cut a deal.”

“This is one of the most important days in American history,” Trump declared. “It’s our declaration of economic independence. For years, other nations gained power and wealth at our expense. Now, it’s America’s time to thrive. We’re going to use these trillions to lower taxes and reduce the national debt—and it’s going to happen fast.”