More information to evaluate the full impact of federal tariffs and reciprocal tariffs on the California economy will become available if a California Chamber of Commerce-supported bill becomes law.
The bill, SB 263 (Gonzalez; D-Long Beach), passed the Senate Transportation Committee last week with unanimous support.
The urgency bill authorizes funding for a study that will help determine the impact tariffs have had and will have on the state’s seaports, cargo airports, and land ports of entry. The study is to be completed by January 1, 2026.
Recent trade tensions and tariff implementations have introduced uncertainty and disruption into California’s economy.
Understanding Tariff Implications
The study funded by SB 263 will enable lawmakers and businesses to understand tariff implications for the state’s economic output, employment, affordability, tax revenues, and port revenues. SB 263 will also allow for study of the impacts of tariffs on specific sectors such as agriculture and manufacturing and on the availability of financing and funding for port infrastructure.
International trade and investment are a major part of the economic engine for the state of California that broadly benefits businesses, communities, consumers and state government. California’s economy is more diversified than ever before, and the state’s prosperity is tied to exports and imports of both goods and services by California-based companies, to exports and imports through California’s transportation gateways, and to inflows and outflows of human and capital resources.
By assessing vulnerabilities and opportunities in the California trade infrastructure and relationships, SB 263 can help ensure California businesses remain globally competitive, sustaining jobs and fostering continued growth. At a time when Californians are facing significant affordability challenges, understanding how tariffs affect consumer prices can help identify pathways to mitigating cost-of-living pressures and supporting economic growth.
CalChamber Position
The CalChamber is committed to supporting a free trade agenda that fosters economic growth and job creation. The CalChamber opposes protectionist measures, which disrupt global supply chains, raise consumer prices, and hinder the competitiveness of California businesses.
SB 263 will be considered next by the Senate Business, Professions and Economic Development Committee.
Staff Contact: Jon Kendrick
