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,

California is experiencing unexpectedly shaky economic conditions, as health care costs rise and Trump’s tariffs create ongoing uncertainty.

As Gov. Gavin Newsom prepares to unveil his revised budget proposal, California is experiencing unexpectedly shaky economic conditions, with a likely deficit of more than $10 billion next year.

SACRAMENTO – California faces a $12 billion budget shortfall, Gov. Gavin Newsom announced Wednesday, citing Donald Trump’s global trade war, devastating Los Angeles wildfires and growing health care costs as having battered the state’s economy.

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.