Committee backs study into tariffs’ economic effects on California

SB 263, presented on behalf of Majority Leader Gonzales, directs the state to perform a statewide study on the economic impacts of federal tariffs on California, with the Transportation Agency coordinating with the Department of Finance and Go‑Biz.

The author cited the scale of California’s trade: “California handled over $800 billion in imports and exports,” and noted that a large share of containerized trade moves through state seaports. Supporters warned that tariffs imposed at the federal level are raising costs for California businesses and households and provoking retaliatory measures from other countries.

Witnesses from the Pacific Merchant Shipping Association, the California Building Industry Association, and multiple trade groups told the committee the state lacks a standardized model to measure tariffs’ domestic effects and needs data to inform policy responses. Dan Dunmoyer of the Building Industry Association estimated tariff-related costs increase construction by roughly $9,200 per home and cited impacts on materials such as softwood lumber (Canada), gypsum (Mexico) and certain fasteners and appliances (China). Mike Jacob of the Pacific Merchant Shipping Association urged a data-driven statewide response to guide investments and mitigation strategies.

Several senators supported the bill and urged the study be comprehensive — to include effects on exports, ports’ competitiveness and potential options for reshoring or regional industrial policy. The committee voted to pass the bill to Senate Appropriations Committee.

Votes and next steps: Committee recorded a favorable vote and sent the bill to Appropriations for fiscal and policy review. Supporters said the study should be outcome‑neutral and capture both negative and potential positive effects on particular U.S. industries and workers.