California has overtaken Japan to emerge as the fourth largest economy globally.

California has overtaken Japan to emerge as the fourth largest economy globally.

In a significant economic advancement, California has overtaken Japan to become the fourth largest economy globally. Governor Gavin Newsom announced this development, referencing data from the International Monetary Fund and the U.S. Bureau of Economic Analysis, as reported by the BBC.

 According to the figures, California's Gross Domestic Product (GDP) reached an impressive $4.10 trillion in 2024, surpassing Japan's $4.01 trillion. This positions the state behind only the United States as a whole, China, and Germany in the global economic hierarchy. Governor Newsom proudly remarked, 'California is not merely keeping pace with the world — we are actively influencing its trajectory.' However, he tempered his enthusiasm with a warning, indicating that this progress may be jeopardized by the current federal administration's stringent tariff policies, which he vehemently criticized. 

Newsom, who is widely regarded as a potential Democratic presidential candidate for 2028, has already initiated legal measures in opposition. California's economic strength is attributed to its leadership in industrial production and agriculture, as well as hosting two of the largest seaports in the United States. Despite a temporary 90-day halt on retaliatory tariffs, former President Donald Trump enacted a broad 10% import tariff on all foreign goods entering the U.S., along with an additional 25% tariff on imports from Mexico and Canada. His administration also engaged in a comprehensive trade conflict with China, imposing tariffs of up to 145% on Chinese products. 

In retaliation, China implemented tariffs as high as 125%, potentially elevating some combined rates to an astonishing 245%. Amid this escalating trade conflict, Governor Newsom voiced significant concern regarding California's economic outlook. 'As we commemorate this remarkable achievement,' he stated, 'we must also acknowledge that our growth is endangered by reckless federal tariff policies. California's economy is a vital engine for the nation, and we must safeguard it.'