California has overtaken Japan to become the world’s fourth-largest economy, with a nominal GDP of $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion GDP.
The big picture: Gov. Gavin Newsom highlighted California’s economic growth of 6% in 2024, positioning the state behind only the United States, China and Germany in terms of economic size.
Newsom praised California’s thriving economy due to investments in people, sustainability, and innovation, emphasizing the state’s role as a global economic leader.
However, Newsom expressed concerns about the impact of President Trump’s tariff policies on California’s economic strength, referring to them as reckless and a threat to the state’s economy.
Go deeper: California contributed 14% to the nation’s GDP in 2024, driven by industries such as Silicon Valley, real estate, and finance, making it a vital economic powerhouse for the United States.
Governor Newsom recently filed a lawsuit against President Trump over the implementation of tariffs through emergency powers, citing negative consequences on Californian families and businesses.
The lawsuit argues that Trump’s unilateral tariff actions have disrupted supply chains, increased costs, and inflicted significant economic damage on California, the largest economy in the U.S.
California engaged in substantial trade in 2024, totaling nearly $675 billion, with Mexico, Canada, and China being the state’s top three trade partners.
Over 40% of California’s imports came from Mexico, Canada, and China, with those countries accounting for a significant portion of the state’s total imports last year.
What they’re saying: “California isn’t just keeping pace with the world – we’re setting the pace,” Newsom said. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”