California's economy has surpassed Japan's, becoming the world's fourth-largest with a GDP of $4.10 trillion in 2024. This growth, highlighted by Governor Newsom, comes despite concerns over President Trump's tariffs. Newsom filed a lawsuit against these tariffs, which are impacting global markets and causing uncertainty. While celebrating the milestone, Newsom expressed worry that the tariffs threaten California's economic progress. Japan's shrinking workforce and rising social care costs also contribute to its economic challenges.

Prepared by Christopher Adams and reviewed by editorial team.