Despite facing challenges like a housing shortage and a homelessness crisis, California's population grew by approximately 250,000 last year, bolstered by rising births and international migration.

Newsom attributes this economic success to significant investments in people, sustainability, and innovation, while expressing concerns about the potential negative impacts of President Trump's tariffs.

He warned that these reckless tariff policies could jeopardize California's economic progress, emphasizing the state's crucial role in the national economy.

Criticism of the tariffs has emerged from both sides of the aisle, with Republican lawmakers arguing that they effectively act as tax increases for American consumers.

Trump's tariffs include a 10% levy on imports and additional 25% tariffs on goods from Mexico and Canada, escalating tensions in a trade war, particularly with China.

This economic milestone follows California's previous achievement in 2018 when it surpassed the United Kingdom to become the fifth-largest economy.

However, projections indicate that India's economy, currently at $3.90 trillion, may surpass California's by 2026, suggesting that this ranking could be temporary.

The ongoing trade war has led to tariffs as high as 145% on Chinese goods, with China retaliating, creating significant uncertainty in global markets.

A study estimates that California could face over $170 billion in import taxes in 2025 due to these tariffs, which Newsom argues threaten the state's economic growth and innovation.

The announcement of California's economic achievement coincides with Newsom's efforts to position himself as a potential Democratic presidential candidate.

California has officially become the world's fourth-largest economy, surpassing Japan with a nominal GDP of $4.1 trillion, as announced by Governor Gavin Newsom.

In response to declining Canadian tourism due to tariffs, California has initiated a campaign to attract Canadian visitors back to the state.