Trump Tariffs Cause $16 Billion California Revenue Loss
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California Governor Gavin Newsom blames President Trump's tariff policies for a projected $16 billion revenue reduction in the state by next year. Despite exceeding income tax projections, the "Trump Slump," as Newsom's office calls it, contributes to an overall revenue shortfall. This adds to an existing $27.3 billion deficit, requiring further spending cuts and impacting the state's 2025-26 budget. California is pursuing legal action to challenge the tariffs.
California Governor Gavin Newsom blames President Trump's tariff policies for a projected $16 billion revenue reduction in the state by next year. Despite exceeding income tax projections, the "Trump Slump," as Newsom's office calls it, contributes to an overall revenue shortfall. This adds to an existing $27.3 billion deficit, requiring further spending cuts and impacting the state's 2025-26 budget. California is pursuing legal action to challenge the tariffs.
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