Trump's Tariff Policy Causes California Tax Revenue Collapse, $16 Billion Loss Imminent!

California is facing a huge financial crisis, with Governor Newsom warning that due to Trump's trade policies, tax revenue is expected to decline by up to $16 billion in the next fiscal year. This loss exacerbates an already existing $27 billion budget gap, creating enormous economic pressure.

The impact of Trump's tariffs has begun to show, with significant declines in capital gains tax, corporate tax, and personal tax revenues. In particular, the decline in capital gains tax is expected to result in a loss of $10 billion. Although California's revenue has seen a slight rebound this year due to a rise in the stock market, this does not mask the impending financial difficulties.

California has filed a lawsuit against Trump, seeking to halt the tariff policy, and will take further measures to cut the budget. To balance the budget, California plans to reduce spending by $16.1 billion and tap into emergency funds, forcing the state to continue cutting expenses in anticipation of a financial storm.