California's economy has surpassed Japan's, state Gov. Gavin Newsom announced, as he warned of potential impacts in the Golden State from President Trump's sweeping tariffs. The big picture: "CA just became the 4th largest economy in the WORLD,

California has become the world’s fourth-largest economy, surpassing Japan and ranking only below the U.S., China, and Germany, according to the International Monetary Fund and the U.S.