SACRAMENTO, Calif. — As the Trump administration moves to end many of the Biden administration’s climate policies and to impose reciprocal tariffs next month, California Gov. Gavin Newsom signed a memorandum of understanding on climate change and trade with Gov. Alfonso Durazo Montano of the Mexican state of Sonora on Monday. 

What You Need To Know

  • California Gov. Gavin Newsom signed a memorandum of understanding on climate change and trade with Gov. Alfonso Durazo Montano of the Mexican state of Sonora

  • “We are here to advance a cause,” Gov. Newsom said at an event in the state’s capital, where he acknowledged the recent fires in Los Angeles and the effects of climate change but did not specifically outline how California and Sonora plan to collaborate

  • The memorandum of understanding comes about two weeks before President Donald Trump planst to impose reciprocal tariffs on U.S. trade partners

  • Mexico is the largest market for California products, buying nearly 19% of the state’s exports, according to the California Chamber of Commerce

“We are here to advance a cause,” Newsom said at an event in the state’s capital, where he acknowledged the recent fires in Los Angeles and the effects of climate change but did not specifically outline how California and Sonora plan to collaborate.

The memorandum of understanding comes about two weeks before President Donald Trump plans to impose reciprocal tariffs on U.S. trade partners — charging foreign countries the same taxes they charge the U.S. It also comes following a recent tariff exemption on Mexican goods covered by the U.S.-Mexico-Canada Agreement.

Mexico is the largest market for California products, buying nearly 19% of the state’s exports, according to the California Chamber of Commerce. In 2024, California sold $33 billion worth of goods to its neighbor to the south. The state’s primary exports are computers, electronic products, machinery and transportation equipment, according to the U.S. Bureau of Labor Statistics.

Mexican products that make their way into the United States through California include vehicles, medical devices, appliances and vegetables. Sonora is Mexico’s largest producer of copper and is also a hub for electronic and automotive manufacturing, including electric vehicles.