Assembly select committee hears how tariffs and shifting policy are squeezing California's Asia trade and tourism

SACRAMENTO ' The Assembly's new Select Committee on Asia, California Trade and Investment opened its first hearing with witnesses from state government, consular offices, business groups and economists warning that recent federal tariffs and policy uncertainty are already raising costs for businesses, disrupting supply chains and reducing international visitation to California.

The hearing was convened by the committee chair at the California State Assembly and featured remarks from Lieutenant Governor Eleni Kounalakis, who said California must continue to engage directly with Asian partners. "California is not a passive actor," Kounalakis told the committee, noting the state's role hosting the 2023 APEC summit and citing two-way trade and investment statistics.

Why it matters: California is deeply exposed to Asia through trade, tourism, higher education and foreign investment. Multiple witnesses tied recent federal tariff actions and shifting trade policy to concrete local impacts ' from reduced airline lift and fewer international students to delayed manufacturing projects and smaller convention business ' that affect jobs and tax revenue across the state.

Several witnesses offered numbers during the hearing. Kounalakis said California exported about $71 billion in goods to Asia in 2024 and that two-way trade with…