Trump’s Tariffs Will Lower California’s Revenue by $16 Billion
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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, according to the document provided by the governor’s office Tuesday. The estimated hit includes $10 billion from reduced capital gains, $2.5 billion from lower corporate profits and about $3.5 billion from decreased personal income tax receipts, including wages and business income.