California Becomes World’s 4th Largest Economy, Beating Japan
California just passed Japan to become the 4th biggest economy in the world, behind only the U.S., China, and Germany. New data from the IMF and U.S. Bureau of Economic Analysis shows California hit a $4.10 trillion GDP in 2024, topping Japan’s $4.01 trillion.
Governor Gavin Newsom proudly said, “California isn’t just keeping pace with the world, we’re setting the pace.”
But he also warned that the state’s progress is under threat. He slammed Donald Trump’s tariff policies, calling them reckless. Trump’s trade war with countries like China has led to sky-high taxes on imports—up to 145%—and big hits in return.
Newsom says these tariffs are hurting California more than anyone, since it runs America’s top ports, tech firms, farms, and factories. He’s even filed a lawsuit to stop the president’s tariff powers.
Meanwhile, Japan’s economy is shrinking. An aging population, rising costs, and lower consumer growth have slowed it down.
California’s strength? It’s got it all—Silicon Valley, Hollywood, agriculture, manufacturing, and the biggest ports. But Newsom says Trump’s trade moves could still shake that foundation.
Trump, on the other hand, claims he’s just “leveling the playing field.”