Gov. Newsom to cut California budget as Trump’s trade war crimps economic outlook

By Maxwell Adler | Bloomberg

California Governor Gavin Newsom said he’ll have to cut the state’s baseline spending to balance next fiscal year’s budget because new federal trade policies under President Donald Trump have dampened California’s economic outlook.

Both state and independent economists have “universally downgraded” California’s gross domestic product for next year, Newsom said at a press conference Wednesday. Trump’s tariffs have created a “toxic uncertainty” that has...