California has surpassed Japan to become the fourth largest economy in the world.
According to preliminary data from the U.S. Bureau of Economic Analysis, the state’s nominal GDP reached $4.1 trillion in 2024, surpassing Japan’s $40.2 trillion in nominal GDP during the same period recorded by the International Monetary Fund.
According to the press release, this means that only the United States, China and Germany have larger economies than California, while all three countries in California exceeded 6% growth last year.
“California is not only about keeping pace with the world, but we are keeping pace,” Newsom said in a press release on Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”
But Newsom also warned that the state’s economic capacity is “threatening by the current federal government’s reckless tariff policy.”
“California’s economy supports the nation and it must be protected,” he said.
California is the most populous state in the United States, with about 40 million people accounting for 14% of the country’s GDP in 2024, according to government data, which is government data driven by Silicon Valley and its real estate and finance departments.
Last week, Newsom sued Trump for using emergency powers to unilaterally impose global tariffs, which the governor said hurts California households and businesses.
The lawsuit, filed in federal court on April 16, believes Trump lacks the power to impose tariffs on Mexico, China and Canada, or a benchmark tariff of 10% on imports from the rest of the world.
Newsom said in a press release announcing the lawsuit that the tariffs are “the biggest harm to California, the largest economy, manufacturing and agricultural states” as they “damage supply chains, supply chain disruptions, inflation costs” and “causing billions of dollars in damage.”
The lawsuit argues that Trump’s invocation of the International Economic Emergency Powers Act imposes tariffs “illegal and unprecedented” and that such a broad action requires Congressional approval.
