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California Governor Gavin Newsom on Wednesday mounted a strong rebuttal to US President Donald Trump’s claims on the American economy, calling recent assertions misleading and economically damaging, during an interaction at the World Economic Forum in Davos.

Referring to private-sector performance and corporate activity, Newsom said, “On private sectors [performance], looking at the list, McKenzie, Microsoft, and a few Californic companies, so it’s like what the hell are you talking about.” Addressing the global audience, he added, “For those who are not American, to let you know what’s happening across my country, that’s what’s happening in the USA.”

Tariffs, Deportation, and Jobs Under Scrutiny

Criticising Trump’s economic approach, Newsom said, “His economic policy is not complicated. It’s the tariffs, which are a regressive tax, and mass deportation that is having a major impact on the supply chain.”

Highlighting labour market trends, he said, “Worst job numbers in years in the first year of the Trump administration, 49,000 jobs a month. In Biden’s administration, it was averaging 1,68,000 jobs a month.”

On inflation, Newsom added, “Inflation is not lowering, still at 2.7% in the USA. Everything you heard yesterday was B.S.”

Impact On Farmers, Small Businesses

According to Newsom, the impact of tariff-led policies has been widespread. “It’s impacted by these policies of tariffs that are impacting ranchers, farmers, small business owners,” he said, adding that the celebrated tax cuts were uneven in effect.

“Tax cuts are away from the rich and wealthy, the burden is on the small business and working folks, that policy is being described as America's economic strategy,” Newsom said.

Concluding his remarks, Newsom said, “It’s a failed strategy, it’s a strategy that is impacting all of the USA, including my state (California), which has been very disproportionately affected by these strategies. I’m against these strategies.”