President Donald Trump’s tariff policies are projected to cut California’s tax revenue by $16 billion in the next fiscal year, Governor Gavin Newsom’s finance department said in a memo. The 4% drop in revenue from a previous estimate is largely due to a stock market downturn last month after the president announced his sweeping tariff campaign on April 2,

On the eve of his budget presentation, Gov. Gavin Newsom sought to blame President Trump's tariff policy for reducing California state revenues.

Governor Gavin Newsom’s finance team warned in a memo released on Tuesday that California expects to lose $16 billion in tax money next year because of President Donald Trump’s tariff plan. The memo says revenue in the fiscal year that starts in July will fall 4% from the state’s earlier forecast.