Gov. Gavin Newsom (D-CA) announced Wednesday that California will file a lawsuit against the Trump administration to challenge President Donald Trump’s authority to issue tariffs without congressional approval.

The suit will argue that Trump’s use of the International Emergency Economic Powers Act, which grants the president increased powers during an economic emergency, to impose tariffs on Canada, China, and Mexico and his “reciprocal tariffs” on all imports are unlawful. It will also argue that his sweeping tariffs require congressional approval. 

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“California is the largest manufacturing state in our union — one of the largest trading partners around the globe. No state will be impacted more than the state of California as it relates to the unilateral authority that’s been asserted by the Trump administration to impose the largest tax increase in modern American history,” Newsom said.

California is the first state to sue the Trump administration over its tariff policy.

The lawsuit will be filed in the U.S. District Court for the Northern District of California. The state will ask the court to block the tariffs immediately.

Newsom has said that Trump’s tariffs have resulted in inflated costs and billions of dollars in damage in California, which has the largest economy within the United States and the fifth-largest economy in the world. California is the largest importer and second-largest exporter among states. Canada, China, and Mexico are the state’s top three trading partners. 

Trump imposed a 10% tariff on nearly all imports from most countries. His trade war with China has escalated as the U.S. has imposed 145% tariffs on the country. 

Trump has claimed that an increase in illegal drugs from China formed a “national emergency” that required “immediate action.”

Newsom is set to discuss the lawsuit publicly with state Attorney General Rob Bonta later Wednesday.

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“The President’s chaotic and haphazard implementation of tariffs is not only deeply troubling, it’s illegal,” Bonta said in a statement.

Newsom has also criticized Trump’s approach to tariffs against Canada, pleading with Canadians to continue to visit his state despite the president’s demeaning rhetoric.