CALIFORNIA OVERTAKES JAPAN AS WORLD’S FOURTH-LARGEST ECONOMY
California’s economy has officially surpassed that of Japan, making it the world’s fourth-largest economic power, according to new data from the IMF and US Bureau of Economic Analysis. The state’s GDP hit $4.1 trillion in 2024, edging out Japan’s $4.01 trillion, and placing it behind only the United States, China, and Germany.
Governor Gavin Newsom celebrated the milestone but warned of looming risks due to former President Donald Trump’s aggressive trade policies. “California isn’t just keeping pace with the world—we’re setting the pace,” Newsom said. “But our progress is threatened by reckless federal tariff policies.”
California’s economic strength lies in its diverse portfolio: tech innovation in Silicon Valley, Hollywood’s entertainment empire, major agricultural production, and the largest shipping ports in the US. However, tariffs and counter-tariffs with China, Canada, Mexico, and others have rattled markets. Trump’s latest round of levies has reached as high as 245% on some Chinese imports.
Newsom, a possible 2028 presidential candidate, has sued the federal government over the tariffs, calling them harmful to California’s economy and to US global competitiveness.
